In a recent blog post, we discussed three considerations when choosing a third-party management company for your senior living community or skilled nursing facility (SNF). The discussion focused on alignment, expectations, and experience. But what are the next steps once it has been determined a new operator is the best solution to maximize the performance and stability of a community? Transitioning a senior living community or a portfolio of communities to a new management company is a time-consuming process. Developing a detailed plan is critical to ensuring the smoothest and most seamless transition possible for all stakeholders.
Here are some key considerations when transitioning senior living communities and skilled nursing facilities to a new management company or operator.
Who are the Stakeholders?
There are many people affected when a senior living or skilled nursing community transitions to a new management company. The ownership, outgoing operator, and incoming operator all have critical roles to play in the process, but if each of them remembers to keep the residents, team members, and families in mind, and how the transition will be impacting them, then the many questions that arise during the process will become more easily answered.
How is the Transition Organized?
The overwhelming majority of work involved in a transition happens well before the senior living community begins operating under the new manager. With that being the case, it is critical that the owner, outgoing operator, and incoming operator commit to providing the necessary resources and information that are required to manage the transition process. Transition representatives or point-people should be identified as soon as the transition is confirmed so that regularly scheduled transition calls can begin. A transition schedule should be made available to all three parties, coordinated by the new operator, and updated as tasks are completed. A Gantt chart or similar project management scheduling program is the most effective way to manage the transition.
Who Manages the Transition?
Dedicated and experienced transition representative(s) or point-people should be appointed by the owner, outgoing operator, and incoming operator, with the latter assuming overall accountability and responsibility for the process. It is to be expected during transition that everyone involved will feel a sense of nervousness and apprehension, so a regularly scheduled call can provide opportunities to address any concerns or issues that arise. Some of the more common issues will involve:
- New operator access to the community
- Team members concerned about employment
- Residents concerned about rate increases
- Vendors concerned about past due bills
- Families concerned about the new operator not understanding resident care needs
The transition calls should include strategies for managing the process and opportunities to hear any concerns about the process, where the concerns are arising, and who can best address these concerns.
What Organizational Parts Should be Included in the Transition Plan?
The plan for transition should be divided into three parts: pre-transition, transition, and post-transition with specific requirements, responsibilities, and deadlines for each step. The plan should be detailed, progressive, and flexible when necessary; it should also allow for changes when operational needs arise. For example, an employee meeting to discuss benefits might need to be rescheduled if there is survey activity in the community or a call with the Business Office Manager that could affect monthly billing. Flexibility and understanding will be critical, but a willingness and understanding to work within the confines of existing operational requirements is paramount by all involved parties.
What Should the Transition Plan Cover?
Given that most modern health care systems are technology based, having an IT walk-through of the community will need to be a priority. For example:
- Will the existing computers and phone systems stay on site or need to be replaced?
- Who will be providing Wi-Fi to the community and how many of the existing components will need to be replaced?
- How will WanderGuard™ or the emergency call system be incorporated into the new system?
- What is the plan for transitioning electronic pharmacy services while ensuring that care delivery and the medication pass continue uninterrupted?
Understanding and planning for critical processes will all need to be discussed, planned, and then planned with a back-up plan. A quick refresher training session on documenting the med pass on paper MARs could be time well spent. Providing hot spots can also be an excellent contingency plan if Wi-Fi is not available or fails during the first few days of transition.
One of the biggest challenges that can be overlooked will be the Residency Agreements and the time required to get new ones signed by responsible parties. Is an amendment to the existing agreement a solution, and if so, what information should be included in the amendment? Are there legal or regulatory requirements stipulating the requirements or timing for new Residency Agreements to be signed?
Conclusion
Transitioning a senior living or skilled nursing facility to a new management company or operator is never an easy process. It will be time-consuming and possibly frustrating. It can pull from resources needed for existing operations. However, the process can be managed effectively and efficiently by ensuring value-aligned partners, and a well thought out plan that keeps the ultimate stakeholders in mind—the residents, team members, and families.
Contact Us
Health Dimensions Group (HDG) has nearly 25 years of experience owning, operating, and providing comprehensive third-party management services for a vast array of partners. We’d welcome the opportunity to share more about our insights and capabilities should you be contemplating a new third-party management relationship.
For more information, please contact us at info@hdgi1.com or 763.537.5700.
