In part one of this series, I covered post-election policy shifts, capital market constraints, the Silver Tsunami, value-based care reimbursements, and the importance of strengthening preparedness for pandemics and extreme weather. In part two, we'll explore additional trends that will shape senior care in 2025 and the coming years.
Enhancing cybersecurity measures
The healthcare sector continues to be a prime target for cyberattacks, with ransomware incidents nearly doubling in 2023 and affecting 389 healthcare organizations globally. In the U.S. alone, attacks surged by 128%, impacting 258 facilities (CNI). And cybersecurity challenges aren’t limited only to malicious threats. The 2024 CrowdStrike outage, a severe system disruption unrelated to an attack, highlighted vulnerabilities in relying heavily on single security providers. Although not with malicious intent, the incident disrupted critical services, serving as a reminder of the need for comprehensive contingency planning.
To mitigate risks, facilities must adopt a proactive and layered approach to cybersecurity. Implementing advanced threat detection systems and conducting regular vulnerability assessments are essential. Equally important is developing robust backup and recovery systems to ensure continuity in the face of unexpected outages. Workforce training also plays a crucial role, as human error remains one of the most exploited entry points for cyberattacks.
The lessons from the CrowdStrike incident and the rise in ransomware attacks emphasize the need for resilience. Facilities should explore partnerships with multiple security vendors to reduce dependency on a single provider and actively participate in information-sharing networks to stay ahead of emerging threats. By prioritizing both prevention and preparedness, healthcare organizations can safeguard operations, protect patient data and maintain trust in an increasingly digital care environment.
Increased M&A activity in the post-acute care sector
The post-acute care sector, encompassing senior living, assisted living, and skilled nursing facilities, has experienced a notable uptick in merger and acquisition (M&A) activity. In the first half of 2024, the healthcare providers and services M&A landscape began to stabilize, despite lingering challenges such as high interest rates and economic uncertainties (Baker Tilly). This trend reflects a strategic response to operational challenges, with organizations seeking to enhance efficiency, expand service offerings, and achieve economies of scale.
Several factors are driving this consolidation trend. The aging population, or “Silver Tsunami,” as mentioned in part one of this series, continues to increase demand for post-acute services, prompting providers to scale operations to meet this need. Additionally, regulatory complexities and reimbursement pressures are encouraging smaller operators to merge with larger entities better equipped to navigate these challenges. Technological advancements also play a role, as integrating digital health solutions requires significant investment, which larger organizations are more capable of managing.
Looking ahead to 2025, the momentum of M&A activity in the post-acute care sector is expected to continue. Organizations aiming to remain competitive will likely pursue strategic partnerships and acquisitions to broaden their service portfolios and geographic reach. However, successful integration will require careful planning to align organizational cultures, standardize care protocols, and ensure compliance with evolving regulations. By proactively engaging in thoughtful consolidation strategies, providers can position themselves to better serve the growing senior population and navigate the complexities of the healthcare landscape.
Leveraging digital health and telehealth
The adoption of digital health technologies and telehealth services has accelerated, transforming care delivery across the healthcare continuum. In 2024, the integration of telehealth into electronic health records (EHR) became a significant trend, enhancing the effectiveness of healthcare delivery by allowing physicians to seamlessly access and record patient information in one place (Empeek). This shift has improved access to care, particularly for individuals in remote or underserved areas, and has facilitated more efficient management of chronic conditions.
For facility operators, embracing digital health solutions offers numerous benefits. Implementing remote patient monitoring systems enables continuous tracking of vital signs, allowing for early detection of potential health issues and timely interventions. Telehealth platforms provide convenient avenues for follow-up consultations, reducing the need for in-person visits and minimizing disruptions to patients' daily lives. Additionally, digital tools can streamline administrative processes, such as scheduling and documentation, freeing up resources to focus more on direct patient care.
However, successful integration of digital health technologies requires careful planning. Ensuring data security and patient privacy is paramount, necessitating robust cybersecurity measures. Training to effectively utilize new technologies is also crucial to maximize their potential benefits. By thoughtfully incorporating digital health and telehealth solutions, facilities can enhance care delivery, improve patient outcomes and position themselves at the forefront of modern healthcare practices.
Prepare today to lead tomorrow
One thing is clear: the care services industry is navigating a period of immense transformation. From policy shifts and workforce dynamics to technological innovation and demographic pressures, the challenges we face are matched only by the opportunities they present. For facility operators, the key to thriving in this evolving landscape lies in strategic planning, operational agility, and a willingness to embrace change.
First and foremost, staying ahead of policy changes is critical. Whether it's adapting to potential modifications to the CMS staffing mandate, or leveraging value-based care reimbursement models, success will require a proactive approach. Collaborating with industry associations, implementing flexible workforce strategies, and investing in talent pipelines will help ensure resilience.
Second, we cannot ignore the role of technology in shaping the future of care delivery. Facilities that integrate digital health and telehealth solutions effectively, while ensuring robust cybersecurity measures, will be better positioned to deliver seamless, patient-centered care. Likewise, AI offers enormous potential, but its implementation must be thoughtful and transparent, with a focus on improving outcomes while maintaining trust.
Lastly, preparing for the unexpected is no longer optional. Lessons from the COVID-19 pandemic, the 2024 CrowdStrike outage, and increasingly severe weather events underscore the need for robust preparedness strategies. Building supply chain resilience, developing comprehensive emergency response plans, and fostering a culture of adaptability will be essential to weathering future crises.
By embracing innovation, investing in scalable strategies, and remaining proactive in the face of uncertainty, healthcare facilities can not only navigate these challenges but emerge stronger. As leaders, we have the chance to redefine what it means to provide exceptional service in an industry that is vital to so many. Let’s rise to the occasion—together.
About Brandon Tappan
Brandon Tappan, ShiftKey's CRO, has deep industry knowledge and experience in post-acute care that gives him a unique perspective as one of ShiftKey's senior executives. Prior to joining, he led growth and operations for multi-facility/multi-state organizations in the post-acute space. Brandon is a licensed nursing facility administrator and is a sought after expert on workforce strategies. He served on the Texas Health Care Association Board for five years and often advises on innovative strategies for issues impacting care facilities.
