There are markets for just about everything, where sellers and buyers exchange goods and services. The same is true for nursing homes; “sellers” (providers) make their services available to patients and families (consumers) in exchange for payments from the government, or another intermediary (customers). Most markets and services have life cycles; they emerge, they grow, they mature and then, inevitably, they decline.
In the nursing home market, however, no one wants what is being sold. The consumers and the customers need what’s being sold. The need often leaves little or no choice.
After all, nursing homes have two essential value propositions:
- Safer and effective transitions
- Competent custodial care
That’s it!
This is what nursing homes do. There’s hardly anything about these value propositions that’s discretionary. There are some consumers that want the lifestyle opportunities of living in purpose-built assisted-living residences. Nursing home consumers and customers, on the other hand, need nursing home services. Nursing homes manage safer transitions from hospitals back to home and take care of those who cannot take care of themselves.