In this episode, host Debbie Stadtler welcomes James Carlson, senior reimbursement advisor at AHCA/NCAL, and Nicolette Reilly, senior vice president of quality at the Oregon Health Care Association, for a conversation about the evolution of assisted living over the past four decades. They reflect on the origins of the assisted living model, how the definition of quality has expanded to focus on resident experience and continuous improvement, and the balance between regulation and innovation. The discussion also explores the role of NCAL in advancing the profession and looks ahead to the future of assisted living, including emerging technologies, workforce development, personalized care, and changing consumer expectations. Perspectives in Long Term Care is produced by Association Briefings. Transcript Debbie Stadtler: Since its inception in the 1980s, assisted living has used innovation to redesign aging. Hear more about the evolution of assisted living, how quality has matured, and why the next 25 years may be the best yet. Hi, I'm Debbie Stadtler, editor-in-chief of Provider Magazine, the flagship publication of the American Health Care Association and the National Center for Assisted Living. I'd like to welcome you to this episode of Perspectives in Long Term Care, a monthly podcast produced by AHCA and NCAL. Each month, we'll talk with long term care and assisted living professionals about the opportunities and challenges impacting the long term and post-acute care profession. My guests today are Jim Carlson and Nicolette Reilly. Jim is a senior reimbursement advisor at AHCA/NCAL, and he spent 30 years with the Oregon Health care Association, including 23 years as the CEO. Nicolette is the senior vice president of quality at the Oregon Health care Association. Welcome, Jim and Nicolette. Thanks for being with us. Jim Carlson: Good afternoon. Debbie Stadtler: Well, let's start at the beginning. Tell us about your career journey. What led you to get started in assisted living and long term care? Jim, do you want to kick us off there? Jim Carlson: Sure. I'd say probably my first interest really in health policy and all the issues related to Medicaid and Medicare and the economics and aging demographics was, I worked for an economics professor of mine in college when he ran for Congress. And we spent hours upon hours driving around the Fourth Congressional District in Oregon, and he had a particular interest in health care and health care economics. And since he was running for Congress, he had a particular interest in federal level issues, dealing with Medicaid and Medicare and health care economics. And so it piqued my interest. He ended up losing that race, but I ended up, after graduation, going to work for another member of Congress, and being low man on the totem pole on the staff, Medicaid and Medicare came into my portfolio. And so I really, from just a very young age, got very interested in federal health care finance and reimbursement programs and the economics, and I always had a real keen interest about demographics and the impact that had on the economy and society. Debbie Stadtler: Nicolette, how did you get started? Nicolette Reilly: My path was very different from Jim's. When I graduated with my undergraduate degree, I had a business minor, and right out of college, I started working as a finance and business office manager for a new assisted living in Fort Collins, Colorado. And as a very young, new into the profession, I never envisioned that my career would be in long term care. It just happened to be this door that opened up to me from a business perspective. So in 1995, I started out as a business office manager in an assisted living, and just over the years went from a business office manager to an assistant administrator to an administrator, and then to a regional ops person, and then a vice president of operations. Even did a stint as an owner/operator of an assisted living company a while back. And then about four or five years ago, really wanted to find a way to take my passion of working with seniors and take my passion around driving quality in long term care, and try and find different ways that I could engage and influence the quality that was happening in long term care and how to drive that. And so I had a great opportunity to come over to the Oregon Health Care Association, where now I've been able to see long term care from a completely different perspective, more from the legislative perspective and the regulatory perspective and what goes into that, and the wonderful opportunity to advocate on behalf of providers in both of those areas. Debbie Stadtler: That's interesting. So both of you come at assisted living from a different perspective than normal. Usually I hear about people have a family member that inspired them, or they start as a caregiver, a CNA, and things like that. But you guys really come from, like, the business economics perspectives, and yet you've developed a similar passion and desire to serve in this industry. So it's really interesting the variety of ways people start these careers. Knowing that assisted living started in Oregon, I want to focus on assisted living. You both are from Oregon. What was the profession like when you started, and how has it changed to where we are now? Jim, do you want to start us off? Jim Carlson: Sure. So I joined Oregon Health Care Association in 1994, and came over to run their government relations program, and for the previous seven years, I'd been working on acute care and representing the Oregon Medical Association and doing a variety of health policy issues there. But I closely followed what was going on in long term care, really starting in the, the mid-'80s when I was working for a member of Congress from Oregon. And Oregon was the first state in the country to get a home- and community-based care Medicaid waiver from the federal government, and that happened in 1980. And after the state got that waiver, really it kind of took them until the mid to late '80s till they really started making a lot of serious programmatic changes. But one of those policy initiatives, if you will, was to kind of nurture this new growing model of care that a couple of the early pioneers who were based in Oregon had developed, called assisted living. And so you had people like Wendell White, who'd come from a long family history and background growing up in his mother's nursing home, and developed one of the very first assisted living facilities anywhere in the country. And then he and Karen Brown Wilson, who was another early pioneer... There's a lot of disagreement, or you could get a little argument on who, who had the first assisted living facility. Most of that conversation focuses around Karen and Wendell and some other folks who were early pioneers. Oregon had a Medicaid director at the time, a fellow by the name of Dick Ladd, and he wanted to kind of nurture this little care setting. And so using that waiver that Oregon had received from the federal government, he worked with some of these early developers of what we now call assisted living to come up with a Medicaid payment stream to essentially reimburse them for services in this model. And that led to what was the country's first licensed assisted living setting anywhere in the country. And so really from all that early pioneering work that was done in the '80s, you really saw it take off in the '90s. And as I was coming and transitioning away from an acute care focus into long term care and joined the Oregon Health Care Association in '94, assisted living was becoming a big focus, and the association and our leadership recognized that at the time and really made a heavy investment into trying to support and help guide that development and that growth of assisted living. Debbie Stadtler: Oregon has been a pioneer, and the growth of assisted living has really been impressive, even now, still on a big growth trend as well. Nicolette, how was it when you started, and what changes have you noticed over time? Nicolette Reilly: I think I come... I look at this from a very different perspective. Jim is the all-knowing legislative, how these things started from a legislative perspective. But for me, coming from the operational side, when assisted living was first emerging, it was this exciting, new model that hadn't existed before. And so the goal was to move away from that traditional institutional model of care to create this place where older adults could actually receive support, but still maintain their independence, and their choice, and their kind of control over their individual lives. I think in the early days of assisted living, it was a lot about just knowing the person. It was a relationship-based care. It was focused on that home-like environment where residents were surrounded by people who knew their stories, and their preferences, and what really mattered most to them. But I also, because it was so new, there was a really strong entrepreneurial spirit too. Communities were, like, figuring out what worked, and they were learning each other, and they were building that foundation for what this kind of dream of what assisted living could be for the consumer. And so you had this great kind of fun, competitiveness, entrepreneurial spirit around who could build the better building, who could provide the best care, who could fill their buildings, and those types of things. And I think there was this great spirit of this new concept, really focusing on what the resident wanted and what the resident needed, and trying to create it all in this fun, social, home-like environment. Debbie Stadtler: I love that. The entrepreneurial spirit really is so true, and everybody's finding their way and seeing what works and doesn't work. So I love that depiction of the environment where everybody's trying something new. Well, Nicolette