Fall 2016 issue of Horizons

HEALTHCARE

Healthcare Remains Volatile Economically by Tom Zetlmeisl, CPA, CFE, CFF, CGMA

T he healthcare industry has experienced a lot of change over recent years and it continues to be in a state of constant transformation. The regulatory environment remains unpredictable, especially in this election year. At the forefront of this change is a movement away from the traditional fee for service model toward a model that provides fee for value. In addition, merger and acquisition activity remains strong with consolidation among both payors and providers. Increased Senior Living Demand With the increasing average age of the U.S. population, the demand for senior living continues to be strong and is expected to continue to grow over the coming years. The U.S. Census Bureau has reported that the number of individuals between the ages of

65 and 84 will increase by 38.8% between 2010 and 2020. Therefore, the demand for assisted and skilled living facilities and the labor required to support those facilities will be higher than ever. Other areas expected to thrive include in- home healthcare and supportive services for seniors. Argentum, a leading national trade association serving companies that own, operate and support professionally managed senior living communities across the U.S., estimates that the senior living industry will need to recruit 1.2 million new employees by 2025 in order to meet the demands of this growing segment. The senior living segment has already shown fantastic growth in the past few years. The segment has outpaced the average U.S. job growth by 3.7% and added 346,000 jobs between 2001 and 2014.

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