By: Liz Jensen

Clinical Director, Direct Supply 

Senior living is entering a new era, and care leaders are rising to meet the challenge with a renewed focus on human connection. 

The pressure on care teams has never been higher. The population of older adults is growing faster than the available workforce. Clinical needs are becoming more complex, and expectations from families, payors, and regulators are increasing. In response, senior living nurse executives are taking bold action. They are leading a digital care transformation built not around technology itself, but around people. 

These leaders are redesigning how care is delivered and documented. They are using data and digital tools to protect staff, improve resident outcomes, and ensure long-term sustainability. The goal is not to layer on more software. It is to align technology and clinical judgment into one integrated system that drives better care. 

Embracing newer technology designed for senior living 

Skilled nursing centers have been using electronic health records (EHRs) for 20+ years, but in Assisted Living/Memory Care communities, it’s relatively newer than technology. Early adopters had limited options available to them; modules adapted from skilled nursing solutions, or platforms built on features that were added to an existing CRM or billing system. Within the last 5 years, new solutions, built specifically for Assisted Living/Memory Care users, are giving nursing executives and leaders improved experiences and new ways of re-designing their care models with data not previously available to them.  

“They’re not just buying more software or signing new contracts. They’re redesigning how care gets delivered, coordinated, and documented in their communities.”  

Today’s forward-thinking executives are shifting their focus. Instead of chasing features, they are asking deeper questions. Does this solution help my team make better decisions? Will it reduce their workload or add to it? Is it built for our environment, or is it a generic tool trying to fit where it doesn’t belong? 

The answers to these questions are shaping investment decisions across the industry. Many providers are moving away from one-size-fits-all solutions. They are choosing systems built specifically for their care settings. These systems are easier to use, better aligned with daily workflows, and more effective in supporting real clinical judgment. 

Four strategies powering digital care transformation

Digital care transformation is not a single project or platform. It is a strategic shift happening across four essential areas of senior living operations.

1. Connected information

Data is only useful if it’s accurate, accessible, and aligned with how care teams work. That’s why nurse leaders are investing in systems that reduce redundancy and eliminate duplicate entry. This creates one reliable source of truth for resident information. 

Purpose-built platforms, like DS smart®,  ensure that the right data flows to the right people at the right time, helping staff respond faster and more effectively. 

2. Smarter workflows and clinical judgment

Smarter workflows and clinical judgment start with technology that truly supports the care team. Nurse executives are looking for tools that support both the knowledge and skills involved in clinical judgment-noticing changes, acting quickly, and communicating clearly with others. 

The Notice – Act – Communicate framework is core to clinical judgement. Technology can play an important role in generating and capturing data needed to inform platform algorithms and user insights for nurses. It reduces missed changes, and gives nurses and CNAs the confidence that their tools are helping, not hindering, care delivery. 

3. An empowered workforce

Time is the most valuable resource in senior living. Staff need tools that give it back. That’s why automation, robotics, and mobile documentation are gaining traction. These solutions take on repetitive tasks and reduce documentation burden, so clinical teams can spend more time where it matters most, with the people they care for. 

Technology is helping nurses and CNAs work at the top of their license. It is also helping organizations rethink roles, responsibilities, and workflows. By reducing the friction of daily tasks, providers are building more resilient care teams and reducing burnout. 

4. Better outcomes and long-term sustainability

Digital tools must deliver results. Nurse executives are focused on reducing safety events, lowering rehospitalizations, and preparing for new models of value-based care. But they are also thinking about sustainability. Every new investment must hold up to real-world demands, from training and implementation to long-term use at scale. 

Cost is more than a line item. It includes change management, staff readiness, and integration with existing systems. Providers are seeking solutions that reduce complexity instead of adding it. They want fewer devices and fewer logins. They are looking for a more unified platform that streamlines the entire care experience. 

Why it matters for the future of senior living 

This digital transformation is deeply human. The goals are clear:  
1. Make it easier for clinical teams to do their best work, caring for residents  
2. Help residents live with dignity, safety, and connection 
3. Build systems that will support the next generation of senior living 

Every nurse, CNA, and team member brings heart and dedication to their work. Our responsibility as their technology-driven solutions provider is to design technology that respects that commitment. When we reduce friction, build smarter tools, and lead with empathy, we unlock better outcomes for everyone.  

Why robotics matters in senior living 

Robotics is a proven model of workforce augmentation through filling gaps, not replacing caregivers. By automating repetitive, time-consuming tasks, communities return valuable time to caregivers so they can focus on what matters most: caring for seniors. 

 “If people come in and they say, ‘Robotics is doing all of the dull, dirty tasks around the building and it’s freeing up caregivers to actually spend time interacting with residents’ That’s a building I’d be in.“

With the right tools, communities can: 

• Relieve staffing shortages. 
• Improve efficiency with floor cleaning robots and delivery automation. 
• Reduce burnout with smarter workflows. 
• Prepare for the future of senior living with scalable technology. 

Practical applications of healthcare technology today 

Technology in healthcare has rapidly advanced in the last decade, and robotics is a leading example. These are not futuristic prototypes, they’re available, proven solutions already delivering measurable impact in care environments. 

• Delivery robotics: Food service robots like Servi Plus transport meals, linens, and supplies, saving staff hours each week. 
• Environmental services (EVS robotics): Solutions like Whiz by SoftBank Robotics America reduce repetitive labor and reallocate time toward higher-value engagement with residents. 

As one staff member explained after adoption: “Whiz helps us keep the hallways and common areas clean so we can focus more on resident care.” 

Results in action 

Direct Supply partnered with Sabra Healthcare REIT to pilot cleaning robots in senior living communities. The results were clear: 

• Performance: Over 1.2 million square feet of space cleaned, saving nearly 300 hours of manual labor. 
• Consistency: Routine cleaning reduced debris and boosted confidence in daily hygiene. 
• Labor reallocation: Staff redirected time toward direct care and resident engagement. 
• Resident experience: One resident shared, “It’s nice to know the carpets are getting cleaned every day, not just when someone has time.” 

These outcomes prove that robotics is both a workforce extender and a resident-experience enhancer. And the impact didn’t stop there. What started as a two-community pilot quickly grew across Sabra’s portfolio. The investment proved its value, delivering consistent, reliable cleaning that eases the burden on staff, delights residents, and scales seamlessly across communities. Robotics is no longer an experiment; it’s a proven strategy to strengthen portfolios and create lasting operational value. 

Preparing for the future of senior living 

Adopting new healthcare technology isn’t just about solving today’s problems, it’s about preparing for tomorrow’s realities. Designing spaces ready for healthcare technology trends like robotics will be essential. 

 “By the time a new building opens, it might be too late to redesign for robotics. You have to make sure your building is ready for adoption, even if you’re not adopting yet, you probably will in the next 10 years.“

Forward-thinking providers will gain an edge by extending workforce capacity without adding headcount, enhancing resident satisfaction with consistent and reliable service, and reducing operational costs through scalable automation. At the same time, they will build a culture of innovation that attracts both residents and staff, positioning their communities as leaders prepared for the future of senior living. 

The bottom line 

The future of senior living will be shaped by providers who act today. Robotics allows communities to close the care gap, protect staff well-being, and elevate the resident experience. 

“We’re not asking you to change the world today, just try something. Because if you don’t, you are going to fall behind the people that are.” 

– Justin Smith, Senior Innovation and Technology Manager 

Robotics isn’t just about machines, it’s about creating communities where technology supports compassion, dignity, and human connection. 

Why baby boomers aren’t moving in 

For decades, the industry has anticipated the arrival of baby boomers. And many communities are still waiting. COVID-19, rising construction costs, labor challenges and interest rates present real barriers, but the deeper issue remains clear: 

Baby boomers aren’t satisfied with what’s currently being offered. 

Boomers, and Generation X ,are redefining aging. They don’t view senior housing as a last resort. Instead, they seek vibrant lifestyles with meaningful experiences. If we as an industry keep building and designing for what worked for generations past, we risk alienating a generation that thinks differently. Instead, we need to value what our new audience values: independence and aspirational living. 

Moving from need-based to aspirational living 

Historically, seniors have transitioned into senior housing following a crisis: a health event, isolation, or loss of support. But what if we flipped that model? What if seniors chose to enter communities earlier, healthier, and enthusiastic about their future? 

This requires rethinking our value proposition as an industry. Instead of marketing communities as safe havens, present them as places for growth, where discreet technology supports proactive care, individuals pursue their passions, and personalized wellness plans promote health span, not just lifespan. 

 “People deserve dignity as they age. We need to shift the narrative.”

– Gaurie Rodman (Vice President – Real Estate Strategy and Development)

Designing communities for wellness and joy 

From culinary experiences to virtual travel and social engagement, expectations for senior housing are higher than ever. Communities must evolve beyond simply providing care. They need to become cultural hubs, wellness centers, and social connectors that focus on holistic wellness, including: 

• Effective, discreet physical health support 
• Emotional wellness through meaningful social connection 
• Cognitive engagement through purposeful activities 
• Purpose-driven opportunities to inspire individuals daily 

All of this must be integrated into environments that don’t feel like “nursing homes” of the past. Human-centric design should be intuitive, inclusive, and dignified, reflecting the lifestyle baby boomers want. 

“It doesn’t have to be the Taj Mahal of the world, but we can take the 40-year-old building in the heart of a community and actually looking at it with the right lens, transform it to serve the community that it’s trying to serve.” 

Leveraging technology and innovation to meet shifting needs 

To meet evolving consumer expectations while addressing operational and staffing challenges, operators must lean into technology, innovation, robotics, and AI. Embedded, invisible healthcare systems, predictive monitoring, and digital engagement tools can preserve dignity while proactively supporting health. Robotics and automation can help ease staffing pressures, while AI can anticipate resident needs and connect them with services, experiences, and community members in real time. 

“We need to make sure all the pillars, including health, wellness, affinity-based living, and meaningful experiences, align in the same community. Embedded technology and invisible healthcare should be the standard and a given in creating vibrant, purposeful living.” 

This approach not only enhances the resident experience but also enables the development of consumer-aligned, affordable housing models, ensuring communities remain accessible and competitive in a changing market. 

Time for a new narrative 

By listening deeply, designing with empathy, and building with purpose, we can create remarkable communities accessible at every income level. This new generation wants environments that feel like home and honor both independence and community. 

The future of senior care depends on operators reframing the approach to human-centric design. That future begins today. The most successful operators will lean into their community’s unique strengths to transform operating models, meeting consumers where they are and delivering what they truly value. 

The essentials of JCAHO behavioral health accreditation 

The Joint Commission evaluates behavioral health programs against rigorous criteria that promote patient safety, quality improvement, and regulatory compliance. Key focus areas include: 

• Environment of care: ensure ligature risks are removed, exits stay secure, and approved ligature resistant products are in place
• Safety and security: deploy behavioral safety products such as break-resistant fixtures and tamper-proof hardware
• Patient rights and ethics: support dignity with private rooms, clear signage, and trauma informed design choices

Adhering to these standards safeguards accreditation and positions your organization as a leader in patient-centered care. 

Designing for compliance: from construction to furnishings 

Adaptive reuse

Convert existing structures faster by adding biophilic elements and flexible room typologies that meet JCAHO criteria. 

Materials and finishes 

Use non-glare lighting, calming color palettes, and continuous surfaces to reduce stress triggers. Install recessed shelving, concealed hinges, and rounded-edge countertops to eliminate hazards without compromising aesthetics. 

Integrating trauma informed design 

Apply a trauma informed design checklist to boost compliance and wellbeing: 

• Choice and control: offer adjustable lighting, temperature controls, and bedside privacy shades 
• Predictability: use standardized layouts and clear wayfinding to lower anxiety 
• Sensory considerations: add acoustic panels, soft textiles, and nature-inspired art for a healing atmosphere 

These strategies support the continuum of care from inpatient psychiatric units to behavioral assisted living environments. 

Levels of care & JCAHO requirements 

Different levels of care require tailored design strategies: 

Key JCAHO focus areas

Ligature resistant design, rapid egress, advanced monitoring 

Homelike environment, supervised autonomy, communal spaces

Flexible multipurpose areas, private counseling spaces 

Monitoring, maintenance, and continuous improvement 

JCAHO surveys are ongoing. Build a quality management plan that includes: 

• Routine safety audits: inspect ligature resistant products, test door hardware, review escape routes 
• Staff training: coach teams on behavioral health risks, equipment use, and emergency protocols 
• Individual feedback: collect input on care environments to guide design updates 

A robust plan keeps your facility compliant and responsive to evolving behavioral health strategies. 

Emerging trends in behavioral health design 

Stay ahead with innovations that enhance care and compliance: 

• Smart room technology: integrate environmental sensors for air quality, temperature, and movement 
• Modular and prefab construction: deploy mental health units that adapt to changing volumes 
• Biophilic and healing-by-design: maximize natural materials, daylight, and views of greenery 

By weaving these trends into your behavioral health design guide, you reinforce compliance and foster transformative patient experiences. 

 “As of 2025, we are housing our most vulnerable senior population, in facilities of which 60% are over 30 years old. The aging infrastructure of these communities, compounded by an increase in more impactful weather situations (forest fires, flooding, hurricanes, tornadoes or ice storms), has seen a rise in government mandates requiring facility upgrades. The safety and security of elders is critical; the challenge becomes how we plan, execute and pay for required and necessary improvements.”

Understanding the regulatory landscape 

Regulations often follow crises like hurricanes, floods, wildfires, and ice storms that expose vulnerabilities in aging facilities. After Hurricane Irma, Florida’s mandate for 96 hours of backup generator power for skilled nursing facilities became a blueprint now echoed in other states. Likewise, new assisted living facility regulations are emerging nationwide, aimed at fortifying disaster preparedness and ensuring uninterrupted resident care. 

The realities of implementation 

1. Underestimated costs & capital expenditure

Many state legislators undervalue the true scope of capital expenditure needed for compliance. California initially projected $20,000–$50,000 per facility for emergency power, but actual costs frequently approach $200,000–$500,000 when factoring in engineering, permitting, and installation of multiple backup generators.

2. Supply chain constraints

When thousands of communities race to meet new backup generator regulations, demand outstrips supply. Equipment shortages and labor scarcity delay projects, undermining both compliance and disaster preparedness efforts. 

3. Tight timelines & permitting

Regulatory compliance timelines often don’t align with providers’ maintenance and capital-expenditure schedules, which typically allow only 12–18 months to comply. That window is insufficient for a multi-phase rollout, site surveys, design, permitting, and commissioning, creating a compressed schedule that elevates risk and can lead to costly fines.

Funding challenges & Medicaid reimbursement 

Most mandates arrive without dedicated funding, leaving operators to shoulder the financial burden. Only a handful of states, California among them, integrate certain capital expenditure into their Medicaid reimbursement models. Even there, providers must navigate complex Medicaid reimbursement rates that vary by facility size, acuity level, and service mix. For the majority of communities, securing grants, loans, or alternative financing becomes essential to move projects forward. 

How Direct Supply is responding and what we can do to help 

Operators face significant challenges balancing mandated upgrades with daily operations, especially when resources are limited. Direct Supply provides scalable expertise, including: 

Managing supply chains to deliver essential equipment promptly.

Our TELS™ Building Management platform, combined with a 25,000-technician nationwide field services network, coordinates installation, commissioning, and compliance verification from site survey to final inspection, shrinking the window from mandate to operation.

Preparing for ongoing regulatory evolution 

Regulatory mandates will continue to proliferate, and extend beyond skilled nursing into assisted living, memory care, and beyond. Robust risk management and proactive regulatory compliance strategies are no longer optional; they are essential pillars of operational excellence. 

Direct Supply stands ready to partner with your community, helping you transform regulatory requirements into cost-effective, resilience-building initiatives. By aligning project planning with reimbursement insights, capital funding pathways, and industry best practices, we ensure compliance becomes a strategic advantage rather than an obstacle. 

Fee-for-service vs. value-based care: what’s driving the shift?

A fundamental change is underway in how skilled nursing providers are reimbursed for care. The industry is moving away from volume-based payments and toward models that prioritize value. 

Historically, the fee-for-service model dominated care delivery. Under this structure, providers were paid based on the number and type of services delivered, regardless of patient outcomes. While straightforward to administer, this model created incentives for higher utilization, not necessarily better care, and often overlooked the quality or effectiveness of services provided. 

Value-based care turns that model on its head. It ties reimbursement to performance metrics such as improved recovery rates, fewer hospital readmissions, and overall cost efficiency. By aligning payment with patient outcomes, value-based care encourages a more coordinated, proactive approach to treatment—aiming to deliver better results while reducing the total cost of care. 

“CMS has been testing and driving us towards more value-based care payment models for many years. By tying payment and incentives to population health metrics and outcomes, CMS expects these alignments to reduce healthcare costs. ”

How Medicare Advantage and Medicaid value-based payments affect senior living operators

With the majority of skilled nursing revenue derived from Medicare and Medicaid, any policy change in these programs sends ripples through the industry. Today, more than half of Medicare beneficiaries are enrolled in Medicare Advantage plans, a key driver of value-based care. Simultaneously, state-developed Medicaid value-based payment programs are increasingly shaping reimbursement for Skilled Nursing Facilities, further complicating Medicare and Medicaid payment strategies. These programs require enhanced care coordination, improved clinical outcomes, and often involve lower per-day reimbursement rates. 

This poses challenges for providers already operating with narrow margins. However, it also presents a powerful opportunity: operators that demonstrate measurable success in delivering quality outcomes can stand apart and secure stronger payer relationships. 

Driving clinical outcomes through strategic procurement in value-based care

In today’s value-based care environment, procurement has become a strategic lever for better outcomes. Senior Living providers are selecting products and services that go beyond cost savings to support clinical workflows and operational efficiency. 

Intentional technology designed to augment and streamline clinical workflows are increasingly being adopted. For example, upgrading to DS smart® brings automation, faster vitals capture and more accurate data—enabling better clinical decisions. Similarly, pac-IQ® streamlines referral workflows, allowing providers to allocate time towards improving the resident experience and ensuring more informed care transitions. These strategic investments give clinical staff real time back to focus and resident care and lessen practice variability that leads to improved accuracy, both known to contribute to better outcomes, all while reducing the total cost of care. 

“These new trends that you’re seeing at the federal level and at the state level with regard to payment incentives on the value-based care side are going to dictate a lot of the behavior that our customers have when it comes to purchasing and procuring services.”

The future of value-based care in senior living: lowering the total cost of care

The momentum behind value-based care is growing—and it is here to stay. With bipartisan support and proven results from early programs, it’s becoming the foundation for how care is measured, delivered, and reimbursed across senior care. 

As these models expand across the continuum of care, operators who embrace them today are better positioned for long-term success. By focusing on improving clinical outcomes and managing the total cost of care, forward-thinking providers can gain a competitive edge while delivering greater value to residents and payers alike. 

Direct Supply is committed to helping senior living providers succeed in this evolving landscape. From helping improve outcomes to controlling costs, we’re here to support your mission every step of the way. 

Frequently asked questions about value-based care in senior living  

What is the difference between fee-for-service and value-based care? 

Fee-for-service reimburses providers based on the quantity of services delivered, such as appointments, procedures, or tests. Value-based care, on the other hand, links reimbursement to patient outcomes—rewarding providers for improving clinical outcomes, reducing hospital readmissions, and enhancing recovery rates. 

How does value-based care affect senior living providers across the continuum of care? 

Value-based care impacts every level of the senior living continuum—from assisted living to skilled nursing—by prioritizing outcomes, efficiency, and coordination. Providers must demonstrate measurable improvements in resident health and reduce unnecessary hospitalizations to secure favorable reimbursements and payer relationships. 

What role do Medicare Advantage plans play in value-based care? 

Medicare Advantage plans are a major driver of value-based care adoption. With over half of Medicare beneficiaries enrolled in these plans, they emphasize quality metrics, care coordination, and cost control. This directly affects how senior living operators are reimbursed under Medicare and Medicaid programs. 

How can procurement support better clinical outcomes in value-based care models? 

Strategic procurement in senior living involves selecting products that enhance resident health and operational efficiency. From vital signs monitors to infection control systems, these purchases can reduce avoidable hospitalizations and support compliance—ultimately improving outcomes and lowering the total cost of care. 

The current challenge

Medicaid remains the primary funding source for more than 70% of residents in skilled nursing communities and plays a vital role in supporting services across assisted living, home care, and other long-term care settings. But as Congress debates significant funding cuts to the Medicaid program, they are focusing on provider tax provisions that could deliver serious funding reductions to America’s seniors and their caregivers.

 For providers already delivering care below cost, that kind of reduction directly threatens financial stability, care continuity, and the dedicated teams who support residents every day.

How value-based care and private payers are shaping senior living

Beyond direct cuts, care funding is increasingly flowing through Medicaid managed care and Medicare Advantage plans, shifting oversight from public entities to private insurers. While these models offer flexibility, they often prioritize cost containment in ways that do not always align with the realities of delivering high quality care. This shift toward private payers and value-based care models in healthcare places additional financial and operational pressure on senior living providers, especially in the wake of Medicaid cuts. Many communities are grappling with the impact of Medicaid cuts, which have compounded longstanding challenges tied to senior living Medicaid funding and reimbursement.

As this shift continues, strong partnerships with private payers are becoming more critical. Providers are being asked to demonstrate how their outcomes, innovations, and services create measurable value, improving resident well-being, supporting care teams, and helping payers achieve efficiency goals.

Innovation and technology as a response to Medicaid and Medicare cuts 

There is growing recognition among payers that innovation can drive better outcomes and lower costs. Simple solutions—like anti-rollback devices for wheelchairs—can help prevent injuries and avoid costly hospitalizations, benefiting both residents and the bottom line. In the face of federal cuts to Medicaid and Medicare, innovation becomes not just beneficial, but essential. For skilled nursing communities, technology can bridge the gap caused by declining reimbursement and cutting Medicaid funding initiatives.

At Direct Supply, we’re seeing increasing engagement from private payers interested in smart equipment, home-based technology and streamlined formularies that reduce rehospitalizations and enhance safety. These conversations present a critical opportunity to help build a more resilient, sustainable system for senior living.

 “Are we incentivizing and motivating for the outcomes we desire? In my 30 years of experience, CMS has missed the mark. Prioritizing regulatory compliance and overly complex, and underfunded reimbursement mechanisms make it difficult for providers, and CMS, to achieve more. Value-based care, aligns incentives to desired outcomes and reduces cost of healthcare, but it won’t work if regulatory oversight doesn’t change, or is too late to protect providers. 

Incentivizing for outcomes, not process, and re-working regulations can motivate stakeholders to connect actions to the right things—the right outcomes, the right care, the right types of things we’re trying to do—those things don’t have to be mutually exclusive. They can work in tandem together, and we can get good outcomes and still save money.“

Senior care advocacy in the wake of Medicaid cuts  

The debate over Medicaid isn’t just about funding—it’s about the future of care. Any reduction in Medicaid, whether labeled a provider tax adjustment, block grant or rate shift, ultimately translates to fewer resources for those who need them most. Senior care advocacy has never been more urgent. Reductions in federal funding for Medicaid threaten long-term stability, particularly for communities reliant on long term care Medicaid reimbursements.

That’s why Direct Supply continues to advocate for the providers we serve, making sure their voices are heard at every level. Through targeted, intentional efforts, we’re helping to spotlight the true impact of policy decisions—and fighting to protect the future of senior living. Read about our advocacy efforts.

How Direct Supply is responding and what we can do to help 

1. Advocacy efforts to address Medicaid and Medicare cuts

Our Government Relations team is focused on protecting providers from the real-world impacts of cuts to Medicaid and Medicare by championing smart, sustainable policy. They are leading proactive, focused efforts to ensure the needs of senior living providers remain front and center as key policy and funding decisions are made in Washington. We’re fighting for what’s right—and making sure our customers’ voices are heard when it matters most.

2. Supporting senior living providers with cost-saving solutions

Every day, our teams are showing up with purpose—helping customers focus on what matters most. We work side-by-side with senior living providers to deliver affordable, high-quality solutions that offset the rising cost of assisted living and equipment.

3. Investing in technology to offset the cost of senior living

From AI-powered monitoring to predictive analytics, we help customers manage the cost of senior living while aligning with emerging value based care models in healthcare. These innovations are helping providers lower their cost to serve, allowing more dollars to be reinvested into care and operations.

4. Leading change by partnering with Medicaid stakeholders

As senior living Medicaid models evolve, Direct Supply remains at the forefront—educating, adapting, and collaborating with emerging Medicaid stakeholders to shape sustainable care strategies.

“But if there is a dollar less flowing into nursing home care or hospital care for America’s seniors, that’s a big, big problem.

And we’re going to stand up and not only say no, but we’re going to try to make it a political point for the constituents of these policymakers—let them know that these voters are not going to take it anymore.”

Frequently asked questions about senior care and Medicaid cuts

What is the cost of assisted living with Medicaid in 2025?

The cost of assisted living continues to rise, and with Medicaid funding cuts in 2025, fewer options may be fully covered without out-of-pocket expenses. Coverage also varies significantly by state, as each state’s Medicaid program operates under different eligibility rules and reimbursement structures. Many states now utilize Medicaid waiver programs, which may only cover a limited number of participants or services within assisted living communities. Additionally, even when Medicaid provides some support, families often still face expenses for room and board, personal care, or enhanced service packages. It’s crucial to consult your state’s Medicaid office or a local senior living advisor to understand your specific options.

How do Medicaid cuts affect senior care providers?

Cuts reduce reimbursements, forcing senior care providers to find efficiencies or scale back services—potentially impacting care quality. In some cases, facilities may limit the number of Medicaid residents they accept or delay investments in staffing and infrastructure. This can place additional strain on caregivers and hinder the delivery of personalized, timely support that residents need.

What is the impact of federal funding cuts to Medicaid?

Federal cuts to Medicaid jeopardize access to care for vulnerable seniors, particularly in skilled nursing and long-term care facilities. These reductions may lead to facility closures in underserved areas and reduced availability of critical services. Over time, this can widen health disparities and limit families’ choices when seeking appropriate senior living environments for their loved ones.

Download the eBook for More 

For more trends like this one, download the free ebook. Inside, Direct Supply’s design and construction experts walk through the top trends in Senior Living for 2025, including:

• Destination Living – Turning communities into vibrant retreats with hospitality-inspired design.
• Sustainability & Long-Term Efficiency – Designing for safety, health, and eco-conscious living.
• Authentic Living Spaces – Celebrating individuality, cultural heritage, and natural design elements.
• Wellness-Centric Design – Supporting wholistic health and well-being through thoughtful environments.
• Quiet Luxury – Blending refined aesthetics with versatile functionality.

Our Senior Living Experts

Agility in Procurement

When I think about procurement agility, what comes to mind is typically buzzword-sounding methodology. But agile food service procurement, with its roots in project management theories, is a transformative approach that enhances efficiency, responsiveness and adaptability within the procurement process. This approach ensures that procurement processes are not only streamlined but also flexible to sudden market shifts and emerging trends. When it comes to guiding your procurement teams to become more agile in an ever-changing healthcare landscape, taking a strategic and forward-thinking approach to your procurement is key.

In food service procurement, speed, flexibility and responsiveness are critical components for ensuring optimization and effective operations – here’s why:

• Speed is essential for timely sourcing and delivery of fresh ingredients, which is vital for maintaining the quality and safety of food. 
• Flexibility allows procurement teams to adapt quickly to changing market conditions, such as fluctuations in supply and demand or disruptions in the supply chain. 
• Responsiveness ensures that procurement teams can swiftly address and resolve any issues that arise, such as sudden shortages or quality concerns, minimizing downtime and customer dissatisfaction. 

Together, these attributes enable food service procurement to meet ongoing challenges, sustain operations and deliver consistent value to customers – which is all in a day’s work for the Direct Supply® DSSI™ team.

Key Elements of an Agile Procurement Strategy

Risk Management and Mitigation

At the core of agile procurement is effective risk management. Identifying potential risks early in the supply chain allows for the development of proactive strategies to mitigate these risks. For instance, consider a scenario where a key ingredient’s supply is disrupted due to unforeseen weather conditions. An agile approach would have already identified this risk, with strategies in place to pivot swiftly to alternative suppliers, thereby minimizing operational disruptions.

Adaptive Supplier Relationships

Creating flexible relationships with suppliers is crucial. This might involve scalable contracts that can be adjusted based on demand fluctuations, or collaborative problem-solving approaches that foster mutual trust. These adaptive relationships enable organizations to respond quickly to new challenges without delay.

Technology as an Enabler of Agility

Technology plays a pivotal role in enhancing procurement agility. For example, AI can be used for predictive analytics to foresee supply chain disruptions before they occur. IBM’s AI technology, Watson, leverages AI and machine learning to analyze vast amounts of data from various sources, including weather reports, social media, news feeds and historical data. This enables it to predict potential disruptions in the supply chain before they occur. 

Blockchain technology offers unparalleled transparency, making it easier to trace product origins and manage contracts. If a large-scale grocery retailer was utilizing a combination of blockchain and AI, every point in the supply chain process—from the farm to the processing unit, to the retailer and ultimately to the consumer—could record data on a secure, immutable ledger. This transparency would allow the retailer to trace any food item back to its source in a matter of seconds, enhancing consumer trust and reducing the scope of food recalls.

Implementing Agile Practices in Foodservice Procurement

Cost Savings through Process Streamlining and Efficiency

Lean procurement processes that eliminate redundancies are key to achieving significant cost savings. These streamlined operations reduce unnecessary expenditures, facilitating quicker decision-making and improving response times, which are critical in high-stakes market environments. By implementing AI tools, such as the DSSI platform, customers can complete procurement tasks more efficiently without needing to contact a support agent. This not only saves time and energy but also reduces labor costs and operational expenses. The increased efficiency allows resources to be allocated more effectively, driving overall cost reductions in the procurement process.

Building a Responsive Team Structure

In agile procurement, the dynamism of the marketplace demands a team that is not only skilled but also highly adaptable. Teams must be able to respond swiftly to changes, whether they are related to supply chain disruptions, technological advancements, or shifts in consumer demand. The ability of a team to pivot quickly without losing momentum is crucial for maintaining continuous operations and competitive advantage.

Training and Development for Flexibility

To cultivate a team capable of responding to these challenges, targeted training and development are essential. Training should focus on:

Enhancing Flexibility & Developing Cross-Functional Skills:

• • Scenario-based Training: Implement training sessions that simulate different supply chain disruptions or market changes to help team members practice their response strategies and decision-making skills in a controlled, risk-free environment.
  • Flexible Role Assignments: Encourage team members to take on various roles within the procurement process. This exposure helps them understand different facets of the operation and prepares them to fill in or adapt when needed.
  • Interdepartmental Rotations: Offer opportunities for team members to work in different departments. This not only deepens their understanding of how each part of the organization interacts with the others but also enhances collaboration skills.

Challenges and Solutions in Agile Procurement

Overcoming Resistance to Change

One of the significant hurdles in adopting an agile procurement strategy is the inherent resistance to change. This resistance can stem from within the organization and be complicated by challenges in managing change or integrating new technologies. 

To manage these challenges effectively, organizations should implement a multi-faceted approach:

• Leaders should clearly articulate the benefits of agile procurement through effective communication. Building better supplier relationships and enhancing responsiveness to market changes is key to building out a strategic plan.
• Providing training and education can also alleviate fears and build the necessary skills for agile practices. 
• Engaging stakeholders early and often can foster buy-in and reduce resistance. Involving team members in the decision-making process and addressing their concerns can create a sense of ownership and commitment to the new model. 
• Organizations should adopt a phased implementation approach. Starting with pilot projects can help demonstrate quick wins and provide valuable lessons that can be applied to broader rollouts. 
• Moreover, addressing technology integration issues requires a robust IT strategy. This includes selecting flexible, user-friendly procurement software that can easily integrate with existing systems and providing ongoing technical support. 
• Lastly, cultivating a culture of continuous improvement is essential. Encouraging feedback and iteratively refining processes based on real-world experiences can help sustain the transition and embed agile principles into the organizational DNA. 

By employing these strategies, organizations can effectively navigate the complexities of shifting to an agile procurement model.

Future Trends and Predictions

Preparing for the Unknown

As nice as it would be, I cannot predict the future – but future-proofing procurement processes is crucial for any procurement partnership, DSSI included. Our procurement team stays informed about global trends, investing in ongoing training and maintaining flexible contractual arrangements. This readiness allows our clients to pivot rapidly and efficiently, no matter what the future holds.

By embracing agile procurement, food service companies can enhance their competitiveness and resilience, ensuring they remain at the forefront of industry developments – both now and whatever AI brings us in the future.