Aging population needs require shift in business, community

Mike Scott is an account executive with Barker Phillips Jackson and co-chair of the Springfield Area Chamber of Commerce Aging Population Task Force.

We hear a lot about the aging population of America. Within 10 years, the bulk of our population will be 55 to 70 years old. Did you know 7 million Americans care for relatives or friends over the age of 55? Did you know that the average age of the caregiver is 46?

Recently, the Springfield Area Chamber of Commerce asked a group of individuals to study the impact of the aging population in the Springfield area. This group examined the issue in depth through focus groups, research and input gathered from a variety of sources.

The task force was asked to look at three major areas and then make a recommendation for action. The first area studied was work force/business operations. This area includes parental care/lost productivity, employee education, work force, sustaining competitiveness and projected costs associated with an aging population.

The study found that, while the aging of the population did not have significant impact on many work force issues, it did have a significant impact on health care.

Today's perception of retirement beginning between 62 and 65 years of age is rapidly changing. New technology, a shrinking work force and the need for greater financial security are all influencing the age at which we think retirement should begin.

Many of the people involved in the task force's study have employees that are already "sandwiched" caring both for their parents and their children. As the baby boomers age, this will become an even greater issue, affecting the work force financially and in lost labor due to absenteeism. Aging will also mean that long-term care insurance will be sought as an employee benefit.

The second area of study was public health. This area includes issues pertaining to healthcare provider reimbursement, adequate staffing and accessibility to care. The study found that Medicare reimbursement has been reduced for acute care, post-acute care and outpatient services. This reduction to providers has required them to shift these costs to private payer sources such as insurance companies.

As far as staffing, there is a very high turnover in direct-care employees in the health care industry. Low wages, competition with other service jobs and the low unemployment rate all contribute to this turnover rate. There is an increasing shortage of health care workers.

In regard to resources for public health care, the task force validated that Medicare is the primary payer source for those over 65. With the health care resources in our area, approximately 1.3 million people are served annually. Of these, more than 50 percent are over the age of 65. The availability of Medicare supplement plans is good, but the plans rarely offer prescription drug coverage.

Another determined need was for a Medicaid clinic in the Springfield area. That issue has been addressed with the recent announcement of a federal grant for such a clinic.

The third area of study was infrastructure, including an emphasis on housing, transit and development issues. The task force found that as the population ages, mobility decreases. As people can no longer rely on personal transportation for medical services, shopping, work, recreation/leisure, social services and education, public transportation services will need to be provided. Additionally, design standards will be needed to accommodate the aging population in buildings and common areas this population will visit.

With housing, maintenance is a problem for the older population, both in terms of physical ability to do maintenance and financial resources. The task force saw a need to shift to housing like apartments, townhouses, duplexes and patio homes.

Potential strategies should encourage diversity in home plans and provide incentives for the development community to meet aging population needs. Mixed use developments will be desirable like Chesterfield Village, where everyday needs like banking, restaurants, recreation, personal care and health care can be found near housing of all types, resulting in one-stop living.

With this understanding of the issues, the task force made these recommendations:

Educate the community about the impending changes we will experience through this population shift;

Encourage the business community, the chamber of commerce and service organizations to be proactive in adequately meeting the needs of the aging population because of the impact these needs will have on business sustainability, quality of life and investment requirements; and

Continually monitor the issue, as it should be at the forefront of our thoughts and plans as we approach 2005.

What can you do? Simple. Think about what was learned from the study. How do these things affect your personal life? Are you prepared financially? Do you or your parents have long-term care insurance? How about your employees? Do you know what to do when an employee says, "My dad needs 24-hour care, my baby-sitter quit, and I need the next three weeks off?"

These issues will be more prevalent in the years to come. Are you prepared?