Introduction
Every industry experiences cycles of growth and decline, and long-term healthcare is no exception. Between 2015 and 2019, the sector faced a prolonged downturn, with declining occupancy rates and shrinking profit margins. Many top nursing home chains struggled, some filing for bankruptcy or undergoing major restructuring.
Paul Contris, a veteran healthcare executive, faced these challenges head-on. Instead of resisting change, he adapted, restructuring his company and ensuring a smooth transition for patients and staff. In this blog, you will learn how healthcare leaders can navigate market downturns and emerge stronger.
Understanding the Long-Term Care Decline
The decline in the long-term care sector was driven by several factors:
- Changing consumer preferences – More seniors preferred home healthcare and assisted living over traditional nursing homes.
- Regulatory and reimbursement pressures – Changes in Medicare and Medicaid policies affected funding and reimbursement rates.
- Labour shortages – Recruiting and retaining skilled healthcare professionals became increasingly difficult.
- Economic factors – Rising operational costs and stagnant reimbursement rates put financial strain on facilities.
For business leaders, market downturns can feel overwhelming. However, those who anticipate change and respond strategically can navigate these challenges successfully.
Strategic Financial Management During Crisis
One of the biggest risks during a downturn is financial instability. Paul’s experience as a CPA and CFO gave him a strong foundation in financial management, which was crucial in handling the 2015–2019 decline.
Key financial strategies for surviving industry downturns include:
- Cost control – Identifying areas where expenses can be reduced without compromising care quality.
- Revenue diversification – Expanding services to attract new residents, such as adding memory care or rehabilitation programs.
- Optimising occupancy rates – Implementing marketing and referral strategies to maintain a steady stream of residents.
Financial discipline is critical in times of uncertainty. By making informed decisions, healthcare leaders can prevent a financial crisis from turning into a business failure.
The Importance of Adaptability
During the downturn, many long-term care providers struggled to adapt. Paul took a proactive approach, working with Configure Partners, LLC, a restructuring firm, to explore lease restructuring and transition options for Welcov Healthcare.
This process involved:
- Assessing financial viability – Identifying which facilities could remain profitable and which needed restructuring.
- Exploring strategic partnerships – Seeking potential buyers and new operators to take over struggling locations.
- Ensuring a smooth transition – Prioritising continuity of care for residents while facilitating business restructuring.
The ability to recognise when a business model is no longer sustainable—and take decisive action—is a hallmark of strong leadership. Instead of resisting change, Paul focused on finding the best possible outcome for all stakeholders.
Managing Organisational Change
During times of uncertainty, leadership plays a critical role in keeping teams motivated and focused. Change can create anxiety among staff, leading to turnover and declining morale. Paul’s approach to leadership during restructuring highlights several best practices:
- Transparent communication – Keeping employees informed about changes and addressing concerns openly.
- Providing support and training – Ensuring that staff have the resources they need to transition smoothly.
- Focusing on patient care – Reinforcing that, despite business changes, resident care remains the top priority.
By maintaining trust and stability within the organisation, leaders can guide their teams through challenging transitions.
Key Takeaways for Healthcare Leaders
Market downturns are inevitable, but they do not have to lead to failure. Paul Contris’ experience demonstrates that:
- Financial preparedness is essential—businesses must manage costs and explore revenue diversification.
- Adaptability is key—leaders must be willing to pivot strategies when industry conditions change.
- Strong leadership is critical—clear communication and a focus on people help organisations navigate uncertainty.
Conclusion
The long-term care industry’s challenges between 2015 and 2019 tested many healthcare executives. Those who adapted, like Paul Contris, were able to transition their businesses strategically while maintaining quality care.
For healthcare leaders, the lesson is clear: success is not about avoiding challenges, but about responding to them effectively. By staying financially disciplined, embracing change, and leading with transparency, businesses can survive even the most difficult market conditions.