Enhance Senior Living Operations | Enhance Senior Living

Improving Operational Efficiency and Margin in Senior Living

By Scott McCorvie, CEO of Enhance Senior Living

Enhance Senior Living is a national senior living broker firm specializing in nationwide senior living i nvestment brokerage solutions including active adult brokerage, independent living brokerage, assisted living brokerage, memory care brokerage, and skilled nursing brokerage. Learn more about our senior living broker and operational improvement solutions by contacting us today.

Summary

Senior living operators are under increasing pressure from rising labor costs, margin compression, staffing challenges, and heightened consumer expectations. While these industry headwinds are real, many communities have significant untapped opportunities to improve financial performance through better operational discipline, smarter use of technology, and stronger alignment between care delivery, staffing, and pricing.

1. Reducing Payroll Overtime Through Smarter Workforce Management

Labor is the largest operating expense in senior living, and uncontrolled overtime is one of the most common drivers of margin erosion. In our experience, chronic overtime is rarely a staffing shortage—it is an operational systems issue. Leverage senior living technology platforms to reduce payroll costs.

Technology is a critical component:

Senior Living CRMs forecast occupancy and upcoming move-ins, allowing staffing to scale appropriately.
Senior Living EHRs track resident care needs and caregiver hours, aligning staffing with real-time acuity and care charges.

When staffing is data-driven, overtime and nursing agency costs decline quickly.

2. Leveraging Technology Platforms to Increase Efficiency

Technology should simplify operations, not create additional work. Communities that fully integrate technology across departments see measurable improvements in both efficiency and margins.

Enhance Senior Living recommends:

Modern, transparent websites featuring virtual tours, services, testimonials, and clear base unit and care pricing
Senior living CRMs to automate follow-ups, manage leads, and streamline marketing workflows
AI-enabled tools to reduce administrative burden and reallocate staff time toward care and resident engagement
Resident engagement and family connection platforms to improve satisfaction, communication, and retention

These tools also reduce reliance on expensive external marketing channels and placement agencies.

3. Ensuring Accurate Care-Level Billing and Revenue Capture

One of the most overlooked margin leaks in senior living is undercharging for care.

This typically stems from a disconnect between:

Clinical teams focused on care delivery
Business offices focused on billing and collections

Accurate care billing ensures communities are properly compensated for the care and services they deliver each day.

4. Eliminating Dependence on Placement Agencies

Placement agencies can significantly reduce profitability, often charging the equivalent of one month’s rent per move-in. At today’s margins, it can take five to seven months to recover that cost.

To reduce and/or eliminate this unnecessary expense, senior living communities can:

Improving website transparency around services, pricing, and care options
Implementing video tours and resident testimonials
Building internal referral programs that leverage existing residents, families, and team members to market new residents

Redirecting placement fees into referral incentives produces higher-quality leads at a fraction of the cost.

5. Implementing Strategic Rate Increases

Rate optimization is essential for long-term sustainability. Communities that fail to regularly evaluate pricing often undercut their own margins.

To confirm your rates are appropirate in the market, be sure to to review:

Quarterly competitive market surveys
Detailed comparisons of strengths, weaknesses, and service offerings
Pricing alignment based on acuity, service level, and market position

We also work with operators to limit concessions and ensure rates accurately reflect the value delivered.

6. Expanding À La Carte Service Offerings

Bundled pricing models often leave revenue on the table. Enhance Senior Living encourages communities to adopt a more flexible, à la carte approach.

Common examples include:

Parking
Transportation
Enhanced dining options
Specialty and/or convenience services

This model increases revenue while giving residents greater choice and perceived fairness.

7. Reducing Advertising Spend Through Community Engagement

Many communities overspend on paid advertising with limited return. Enhance Senior Living focuses on lower-cost, higher-impact alternatives.

Effective strategies include:

Leveraging social media for organic reach
Using CRMs to promote events directly to prospects
Hosting community events and inviting local organizations such as:
- Realtor associations
- Rotary Clubs
- Toastmasters
- Faith-based organizations

Activating existing community spaces builds awareness and trust at a fraction of the cost of traditional advertising.

8. Utilizing Procurement Services to Lower Operating Costs

Smaller communities often pay retail pricing for supplies, limiting margin control.

To reduce your raw food and other supply expenses per resident day, be sure to:

Transition to procurement services with national pricing contracts
Leverage bulk purchasing and economies-of-scale
Reduce supply costs across food, medical, and operational categories

Even modest procurement savings can have a meaningful impact on NOI.

9. Optimizing Insurance and Real Estate Tax Expenses

Insurance premiums and property taxes are frequently overlooked cost-saving opportunities.

Enhance Senior Living works with owners to:

Shop property and liability insurance regularly instead of auto-renewing
Leverage brokers who provide free market comparisons
Review real estate tax assessments, which are often inaccurate for senior living properties

Specialized consultants can analyze and appeal assessments at no upfront cost, sharing savings only if reductions are achieved.

10. Auditing Payroll and Full-Time Equivalents (FTEs)

Every Enhance Senior Living engagement includes a detailed payroll and staffing audit.

We compare:

FTEs per resident day
Payroll expense by acuity level
Community performance against industry benchmarks

We leverage resources such as the ASHA Annual State of Senior Housing Report, which provides:

Occupancy, revenue, and operating income benchmarks
Payroll data by care type (IL, AL, MC, CCRCs)
Comparisons by community size and geography

This data-driven approach allows operators to make informed staffing adjustments without compromising care quality.

Conclusion

Improving operational efficiency in senior living is not about cutting care — it is about aligning systems, staffing, pricing, and technology to support sustainable performance.

At Enhance Senior Living, we partner with senior living owners and operators to identify inefficiencies, implement best practices, and deliver measurable improvements in margins and operational performance. Senior living communities that execute on these strategies position themselves for long-term success while enhancing the resident and family experience.

About Enhance Senior Living

If you like this article, be sure to visit the Enhance Senior Living News section to learn additional ways to enhance our senior living industry. Also, be sure to subscribe to the Enhance Senior Living Podcast on all podcast platforms including Apple Podcasts | Spotify | Amazon Music

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