Senior living residents have lower emergency department visits, hospitalizations and skilled nursing admissions compared to those who have yet to move into a community, according to new research published earlier this week by National Investment Center for Seniors Housing and Care (NIC) and University of Chicago NORC.

NORC and NIC analyzed Medicare fee for service data from 2016 to 2023 to track how health outcomes, care utilization and costs changed for residents from moving into a community through living at the community for several years.

“The claims data doesn’t lie: People are hospitalized at high rates before move-in, but once in senior housing, we clearly see fewer hospitalizations and reduced costs,” NIC Head of Research Lisa McCracken said during a panel this week at the 2025 Fall NIC Conference.

The researchers also compared outcomes and costs of residents with neurodegenerative diseases against their peers living at home or in a nursing home to determine the impact of senior housing on health and stability.

This is due to senior living communities incorporating preventative care contributes to an improved quality of life for residents and reduces health care costs over time after an older adult makes the transition.

“That first year is everything,” said Dianne Munevar, vice president of health care strategy at NORC. “Communities meet the needs of residents and stabilize them, so by the end of year one, their health improves.”

By the third year of an older adult moving into a senior living community, hospital admissions dropped from one in three residents to one in four residents, while emergency department visits dropped 14% by that three-year timeframe, according to the report.

“By year three, costs went down 24%, hospitalizations dropped and emergency visits declined and these improvements were sustained through year six,” Munevar said.

The benefits of congregate senior living for older adults have been identified in recent years and operators have shifted operations to focus on lifestyle, resident engagement and wellness.

“If you think about what traditional senior housing does [provide] nutritious meals, medication management [and] socialization, just those social determinants of health alone improve outcomes,” said Kim Elliot, who is the chief nursing officer at Brookdale Senior Living (NYSE: BKD).

Brookdale has in recent years rolled out its HealthPlus program that is aimed at improving quality of life and reducing preventable emergency department visits and hospitalizations. In August, the company announced that HealthPlus would be rolled out at “just under” 200 communities by the end of this year.

By year three, the average Medicare costs were $7,200 lower per resident than in year one, and by year six, residents experienced fewer hospitalizations and fewer skilled nursing admissions while also paying less for care.

During a session at the 2025 NIC Fall Conference in Austin, Texas, leaders outlined how senior living can reduce frailty, hospitalizations, costs and create Medicare savings for 50% of assisted living residents and 30% of independent living residents.

“Communities are already lowering Medicare costs without regulatory incentives,” Munevar said.

In the future, the leaders called for stronger partnerships between senior living companies with health plans and risk-bearing providers to demonstrate value and improve care coordination. Senior living operators in recent years have turned towards adopting value-based care models to reap some of the rewards of their care and carer coordination efforts.

“The real risk is not embracing the value you’re already creating,” said Tom Cassels, managing director at Manatt Health Strategies. “Someone is going to get paid for it, the question is, ‘Will it be you or an intermediary?'”

This positive impact of senior living starts with an increase in primary and supportive care visits during the first year a resident moves into a community to stabilize their chronic health conditions and leads to long-term health improvements, the report found.

An aspect of senior living care that is often absent for older adults living at home is access to effective care management and care coordination. For operators with residents experiencing neurodegenerative diseases, leading senior living communities create greater stability and safety for residents with dementia or other forms of cognitive decline, the report found.

Outcomes for higher acuity residents include fewer hospitalizations, fewer skilled nursing readmissions and a reduced out-of-pocket cost for care as senior living offers high levels of care services.

“Caregivers of residents with dementia also experience less emotional, financial and physical stress when their loved one is in senior housing,” Munevar said.