Senior Care Nonprofit Loretto Grapples With Costs, Renews Focus On Staffing

One of the largest senior care nonprofits in New York is focused on staying as “fiscally responsible as possible” amid some operational headwinds on the cusp of a new year.

The organization, Syracuse, New York-based Loretto, has notched occupancy gains in the last year while it has also grappled with challenges including the rising cost of providing senior living and care services. Looking ahead to the new year, the organization is seeking to build upon its nearly 100 year legacy with services that expand its mission.

Loretto has 10 communities with services including independent living, assisted living, memory care, skilled nursing and long term care and rehabilitation. Currently, it serves over 10,000 residents annually and employs around 2,400 people in New York’s Onondaga and Cayuga Counties, with a current 98% occupancy rate across all of its unit types.

Almost three-quarters of the organization’s residents are eligible for Medicaid, and it prides itself as a “safety net” for older adults living in central New York, according to Jennifer Ingerson, vice president of housing.

Costs, staffing a bigger focus for 2025

Loretto is ahead of 2025 honing its operations to become an even more fiscally responsible organization. As is the case for many other senior living operators, costs of providing such services remain high.

According to Ingerson, 98 adult homes have closed in the central New York region since 2010, especially skilled nursing facilities.According to Ingerson, the current Medicaid reimbursement rate covers three-fourths of the cost of providing skilled care, which she said makes it difficult to generate sufficient revenue and margins.

Loretto also has seen prices for food increase 44% while wages have risen 142% since the last Medicaid reimburse increase of 0.58% in 2009.

“Nursing homes are closing because if they rely on Medicaid funding, it’s just not sustainable,” Ingerson said.

To help offset costs, the organization takes advantage of local, state and federal grants whenever possible. Additionally, Loretto is heavily involved in advocacy work for the industry with state legislators.

“We’ve had some, some wonderful opportunities with our department of health commissioner to advocate for an increase in our reimbursement rates,” Ingerson said. “I don’t know when it’s going to happen, but at some point I feel confident that it will pay off.”

Looking ahead to 2025, Loretto will focus on employee retention to help be “strong financial stewards,” for its residents and staff. The organization is building more career ladders for frontline staff, particularly certified nursing assistants, licensed practical nurses, certified home health aides and food and beverage associates.

The organization also has “perceptor programs” to teach others social self-awareness and how they communicate with others. Ingerson added that the organization has taken employee suggestions into account and created a new “people leader boot camp” to teach managers and supervisors leadership skills, the proper way to conduct performance reviews, and understanding benefits and finances.

Looking ahead into 2025 and beyond, Loretto is also seeking to grow its skilled nursing and memory care capabilities. The organization will do that partly by seeking out partnerships with other organizations, such as with Ichor Research to offer Alzheimer’s disease and dementia clinical trial opportunities for residents.

“We’re seeing at all of our assisted living and independent living facilities a greater demand than we typically have seen,” Ingerson said.

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