Competing in the assisted living industry: A hospitality perspective; assisted living providers should provide hospitality services—and teaming with
Nursing Homes

The hospitality component in assisted living is by comparison much larger, and the healthcare component much smaller, than in any other segment of the healthcare industry. This may explain why, in recent years, firms in the hospitality industry, such as Marriott International and the Hyatt Corporation, have been expanding into assisted living. (1)

Hospitality firms are especially well positioned to compete in this field. They are experienced in creating value and ensuring quality service through customer satisfaction. However, anyassisted living facility (ALF), regardless of whether it is affiliated with the hospitality industry, should also focus on creating value and ensuring quality service through customer satisfaction. Some suggestions for accomplishing this follow.

Make Customer Service a Top Priority

In an attempt to fill units, many ALFs have tried to cut costs and reduce prices. (2) Decreasing prices to increase occupancy, though, can lead to an erosion in quality of service. ALFs should focus instead on providing exceptional quality, ensuring quick recovery from any service failures, and training and empowering employees to respond efficiently and effectively to customers' needs. By using a marketing philosophy as their orientation, (3) ALF operators can earn profits by serving their customers "better than the next guy.

This would include: Enhancing revenues with ancillary services. The movement toward aging in place will provide opportunities for ALFs to sell ancillary services. One approach is to offer the services of assisted living but in the seniors' own homes. In 2001, Sunrise Assisted Living began offering "At Home" Assisted Living by Sunrise. This includes an in-home aide to help the senior dress and/or bathe, and technology to provide assistance in taking the right medications at the right time, or to call for help in times of emergency. (4) Besides home health services, ALFs can offer other services in the home, including rehabilitation services and geriatric assessment. (5)