The U.S. Supreme Court overturned a 40-year old legal decision known as Chevron, with far-reaching implications. The impact on the senior living industry is still unclear – but it could be significant.

Prior to its overturning, the doctrine instructed lower courts to consider regulatory agency interpretations in defining and interpreting federal laws. The Supreme Court’s move essentially shifts the power back to the U.S. judicial system in deciphering regulatory queries rather than the appointed government agencies.

In an Aug. 2 blog post, NIC President Ray Braun noted it was “still early” to determine what the ruling would mean for senior living operators.

“We don’t know yet how the decision will play out for the senior housing and care industry,” he said.

While the future impact is still hazy, the move could mean that senior living operators could face fewer federal regulations in the future. At the same time, it remains “crucial” for the senior living industry to maintain high standards for operations and care, according to National Investment Center for Seniors Housing and Care (NIC) Co-Founder and Nexus Insights Founder Bob Kramer.

“The federal government may be less aggressive in its ability to insist on certain standards,” Kramer said to a NIC blog post author. “But the industry is making a mistake if it thinks the Chevron decision will provide relief from the need to define and demonstrate outcomes to our customers.”

In an email to SHN on Monday, Kramer also highlighted the uncertainty from the recent Chevron ruling, noting that senior living operators have to “take the lead in proactively defining and demonstrating outcomes for the consumer audience (and the healthcare payer audience) versus reacting to the regulator audience.”

“We cannot be silent on quality but should use data and transparency to build trust in our setting and provide a compelling alternative to staying at home,” Kramer said via email.

The decision won’t impact Medicare or Medicaid payments to skilled nursing operators, Kramer added. The decision has also meant uncertainty for the nursing home staffing mandate announced earlier this year, he said.

Challenges to the minimum staffing mandate were already underway when the Supreme Court overturned the Chevron Doctrine. Industry associations had filed lawsuits to block the mandate, and these groups are now more hopeful about their chances of overturning the staffing mandate due to the Supreme Court’s recent ruling, according to Kramer.

“The likelihood that we will see staffing mandates at the federal level has decreased significantly,” he said.

Oversight and issues around affordability and safety have risen in 2024, with Congressional hearings following a flurry of investigative stories reported by the Washington Post regarding elopements and more.

By emphasizing quality in operations and transparency to families and capital partners, Kramer said senior living operators have a unique opportunity to show healthcare payors that the community can add value by offering chronic illness management and preventive care.

“We cannot be silent on quality,” said Kramer. “We have the opportunity to define what the consumer and the healthcare plans can expect. We have the opportunity to take the lead.”

Recent longitudinal research by the NORC at the University of Chicago found that older adults who live in a community live longer, receive more healthcare and rehab services, and more.