Senior living helps older adults live well longer, NORC/NIC study finds

AUSTIN, TX — Moving to a senior living community (independent living, assisted living or memory care) promotes health and wellness for older adults, particularly those with neurodegenerative diseases such as dementia, according to new research from NORC at the University of Chicago released Monday at the National Investment Center for Seniors Housing & Care’s Fall Conference.

The analysis revealed that senior living’s preventive approach to care contributes to increased quality of life for residents and reduced healthcare costs over time. The research is part of an ongoing initiative between NORC and NIC to assess how senior living supports the health and well-being of older adults. Previous studies focused on frailty, access to healthcare, longevity, health outcomes and Medicare costs.

The investigators analyzed traditional Medicare fee-for-service claims data to determine how health outcomes and costs change for residents from move-in to one year, three years and six years after moving in. They then looked at how senior living managed the health of residents who have neurodegenerative diseases, including Alzheimer’s and other dementias, by measuring their use of primary and supportive care services, acute care services, health outcomes and costs of care.

They found that although residents experience higher volumes of primary and supportive care visits to stabilize their conditions in the first year, they see measured improvement by the third year after move-in and beyond.

The NORC researchers analyzed the sustained effects that senior living has on residents’ health and medical costs, finding that residents who remain in senior living communities use fewer acute care services and see their health stabilize for several years after moving into a community. 

Specifically, one in four residents had a hospital admission in year three compared with one in three in the first year of residency. Emergency department visits fell by 14% from year one to year three, and average Medicare costs per resident were $7,200 lower in year three compared with year one.

“That first year is everything,” NORC Vice President Dianne Munevar said during a presentation on the findings. “It really means, if you were able to get people into senior housing sooner, if you could extend their time in senior housing, what does it look like in two to four years?”

By year six, residents have more “healthy days at home,” fewer hospitalizations, fewer emergency department visits and skilled nursing stays, and lower costs of care, according to the study results. 

“The number of older adults who require special care is growing, and senior housing operators are looking to provide effective and efficient solutions that help address their unique healthcare challenges,” Lisa McCracken, NIC head of research and analytics, said in a statement. “These findings suggest that senior housing communities can reduce the burden on caregivers and the healthcare system, ultimately promoting the health and wellness of older adults.”

Better outcomes for residents with dementia

For residents with neurodegenerative diseases — 70% of whom have at least one other chronic condition — the researchers found that senior living can promote health and wellness by reducing the number of hospitalizations and readmissions, providing timely access to care in a supportive environment, offering relief for family caregivers and ultimately leading to greater longevity. 

According to the data, 98% of senior living residents living with dementia had one or more primary care visits annually, more than 20% had neurology and physical therapy visits, and more than 45% received home health services. The top 25% of senior living communities created stability and safety for those residents, preventing a crisis among them, Munevar said.

“Senior housing is a vital partner in supporting caregivers of older adults with neurodegenerative disease,” she said.

Age group differences

The NORC researchers also looked at what happens in different age groups. Munevar said she was surprised to discover that younger senior living residents, aged 65 to 74, had a higher rate of chronic conditions than the 75-to-84 and 85-and-older age groups. In addition, one in eight residents in the younger cohort experienced a greater reduction in costly care after their first year of moving into a senior living community. 

“Residents who remain in senior housing and care continued to see improvement and stabilization for several years post move-in,” Munevar said, adding that residents in all age groups experienced fewer hospitalizations and emergency department visits, fewer and shorter skilled nursing facility stays, more healthy days at home, and sustained lower costs of care after moving into senior housing.

Kim Elliott, senior vice president and chief nursing officer for Brookdale Senior Living, said during a panel discussion on the results that the beauty of the study is that it gives the industry data on how it affects the health and wellness of older adults. The key, she said, is operators knowing their value.

Munevar said that signals coming from the the Centers for Medicare & Medicaid Services indicate that it’s time to think about creative partnerships — and the data on senior living’s impact on the health of older adults give operators something to bring to the table with payers. 

“You have a power that all of those other reactive players don’t, but with power comes responsibility,” Tom Cassels, manager director of Manatt Health Strategies, said during the panel discussion. “From an investor perspective, with power comes the capacity to monetize that responsibility.”

The next step, McCracken said, will be to answer why senior living has such a positive impact on older adults, and determine what the top 25% of senior living operators are doing so that best practices can be highlighted.

The NIC Fall Conference, marking its 35th anniversary in 2025, continues through Wednesday. NIC President and CEO Ray Braun said that this year’s meeting had attracted more than 3,100 registrants, one of the highest numbers in the past five years. About 600 of the attendees are first-timers, and 150 companies are new to the conference, he said.