Top 10 operations and risk mitigation plans for 2025
The World Health Organization (WHO) urgently calls for action to strengthen the way care is being provided for older people. WHO study evidence suggests that people live longer and remain in good health when living in supportive environments and when they can do the things they value. The study noted that there were little differences from the quality of life of younger populations when older people live in supportive environments that offer the balance of social and physical activities. Often, variations in older people’s lives are genetic, but most factors point to an individual’s physical and social environment, including their homes, neighborhoods and communities.
As senior living operators respond to the 2025 market, there will be a continual need to adapt to the changing residents’/consumer needs. And as we welcome the new year, senior living operators will be challenged to stay in step with consumer needs and be sure not to drop the ball on operational plans, risk management priorities, strategic decision-making and mitigating the operational risk that 2025 brings.
Since senior living is both a service and healthcare industry, operators must be prepared to execute plans to enhance services and address the evolving needs of their residents and staff. As senior housing options and demands continue to rise, several top risk management priorities emerge for senior living in 2025.
01
Although the use of technology and artificial intelligence isn’t new to the industry, it’s becoming a “foundational expectation” of consumers and their adult children, as well as Gen Z employees. A report published by the consulting firm Health Dimensions Group (HDG) highlighted AI-enhanced technologies that support predictive analytics. Predictive analytics assist caregivers in advance of adverse events, including falls, hospitalizations or other significant medical events. Tools that help coordinate resident care and generative AI tools that support care teams in documentation and organizations’ operating efficiencies allow more time for direct care.
Senior living operators should conduct thorough due diligence before entering into a technology contract. The internal technology leader should review the provider’s security protocols, data privacy practices, history of incidents, data breaches and involve the organization’s compliance professional to ensure that all aspects of risk and legal exposures are covered before platform integration.
02
The WTW senior living claims study highlights the growing frequency and severity of aging service claims. Driving rate increases are due to litigation costs, social inflation and aberrational verdicts. Clinical risk management programs, which include oversight of community admission processes, staffing, event reporting, clinical assessments for resident falls, elopement pressure, injury prevention and medical management are effective strategies for reducing general and professional liability claims. Increased litigation, including malpractice claims and resident and family disputes, can lead to financial and reputational damage.
A recent publication from the American Senior Housing Association (ASHA) highlights class action lawsuits resulting from staffing claims against senior living communities matching capabilities and needs. Recent rulings in class action cases raise concerns about staffing levels and quality of care. The organization’s legal counsel and risk managers should carefully review community residency agreements to ensure that the uniform representations and standardized contractual language on resident assessments are consistently executed to reflect care levels and associated service fees.
03
Operators must be vigilant in understanding state and federal regulatory changes. Health and safety standards can pose significant challenges. Operators should work closely with their internal risk management team and compliance officer who meet regularly to ensure regulatory changes and mandates are followed and policies and procedures are up to date. Internal quality audits, regular reviews of incident and event reporting and mock surveys are excellent exercises to conduct regularly.
A 2023 National Center for Assisted Living regulatory report noted that 31% of states reported assisted living regulatory or legislative changes between July 1, 2022 and July 1, 2023. Many of the regulatory changes are focused on infection control and emergency preparedness requirements, and the setting can expect more scrutiny in the future.
As the senior living industry waits for the incoming Trump administration’s playbook, a variety of regulations affecting the senior living industry may be forthcoming. Senior living operators should solicit support from their state and federal regulators and affiliations and meet regularly to stay informed of regulatory updates, appoint a clinical and operational leader to review internal policies and procedures to ensure compliance to regulations are met.
04
Long-term and post-acute care providers are one of the most vulnerable sectors to cyber attacks. Often, residents don’t have proper electronic device protection. Data breaches in senior living communities continue to be a threat and have devastating consequences for residents, exposing them to identity theft, financial exploitation and other forms of cyber crimes. Cyber crimes gain unauthorized access to extensive data of residents and employees, and there’s been a reported increase of 74% in global attacks against the healthcare industry.
Operators must seek education and tools on social engineering, ransomware, loss or theft of equipment data, conduct regular training on cyber awareness and establish a secure network infrastructure. Operators must ensure that they have the correct insurance coverages to protect against hacks and consult with cyber engineering experts and adopt comprehensive risk management practices in cyber to ensure adequate mitigation measures are in place to shield their organizations from the devastating consequence of cyber crime.
05
Operators who focus on the development of individualized care plans that cater to resident-specific needs will find greater resident and family satisfaction, reduced staff turnover and improved regulatory outcomes as residents needs are a top priority in any senior living community
As the Center for Medicare and Medicaid Services mandates value-based care by 2030, the Guiding an Improved Dementia Experience (GUIDE) Model for Alzheimer’s and Dementia Care will help to drive person-centered care and fill the care gaps as GUIDE introduces a new framework that improves quality of life for residents with dementia and helps to navigate those with a dementia diagnosis so they can remain in their communities. Implementation of the GUIDE model aims to improve quality of life for people living with dementia, reduce strain on unpaid caregivers and enable people living with dementia to remain in their homes and communities. Regular meetings with the residents and families on expectations regarding care and services should be scheduled to ensure operators and residents families are on the same page on care needs and level of care changes.
06
Recruiting and retaining workforce continues to be top of mind for senior living and other aging services providers. Over the next five years, the working-age population is projected to grow nationally by 2.3%, compared with the 15% projected growth of the 75-plus population, worsening the imbalance between supply and demand for labor.
Operators will need to identify and invest in resources such as technology to increase efficiency. Also look for support through Direct Services Programs, Care Across Generations Act and other workforce programs led by Argentum and other senior living organizations to recruit and retain workforce
07
Operators must navigate supply-demand imbalances, higher construction costs, changing consumer preferences and affordability pressures. A balance on affordability and quality of care and cost must be met. Operators are facing supply demands, and those that adopt data-driven decision making for development projects and financing of development projects will be better positioned to finance new developments or refinance existing ones.
08
Resident and staff safety remains a top priority for senior living operators. Investing in an annual review of internal emergency management planning exercises, hazard vulnerability assessments, pandemic preparedness assessments and workplace violence preparedness will aid in fostering a safe living and working environment.
09
Operators need to establish robust systems for gathering feedback from residents, families and staff to ensure transparent communications and the adoption of a hierarchy of safety to continually improve services and address grievances and concerns timely. Providers should work closely with their risk managers and insurance brokers to obtain resources and training on grievance management and incident and event reporting.
10
Health and wellness programs are essential in every aspect of a resident’s life. Nutritious meals, social activities and physical activities help secure a safe environment for residents. Senior living operators should engage their risk managers, clinical team members, dietary staff and activities staff to plan activities that meet their resident populations. This can be achieved through a thorough admission assessment, admissions screening process and routine wellness checks that detail the resident’s interests and social and physical needs.
Health and wellness programs create a safer, healthier and supportive environment for residents, leading to better outcomes for residents and the community. Comprehensive wellness programs demonstrate a commitment to resident care and can help reduce negligence claims related to health care issues, falls, isolation and improper medication management.
As we welcome 2025 and look for communities to grow and thrive in the multifaceted industry, it’s time to reinstate communities’ priorities to reach their operating goals. As the industry is experiencing rising occupancy levels and demands for middle-market product offerings and strategies for older adults age in place, senior housing providers will look to differentiate their service offerings to more home-based services, specialty services for memory care and intergenerational living.
To stay in step with market demands and senior living transformation, operators must consider evolving risk exposures that can become costly to the organization. By navigating risk and the complexities facing the industry and incorporating risk mitigation strategies in 2025 operations plans, senior living operators can create safer, more resilient and responsive communities that prioritize health, safety and operational excellence to meet the evolving industry challenges.
WTW hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, WTW offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).
