CapEx (Capital Expenditures) vs. OpEx (Operating Expenditures)
With the rise of cloud solutions several years ago, many Senior Living organizations have begun shifting IT expenses to an OpEx (Operating Costs) model. So many of these Senior Living and Post-Acute Care facilities are well capitalized when they are built and pay up front for the hardware they need to get their facility operational. After being in business a few years, they face ongoing challenges with margins, billings and reimbursements that make it much more difficult to accommodate capital expenditures on an ongoing basis.
Finding ways to fit ongoing IT expenses into their operating expenditures is far more practical and accessible than relying on influxes or accumulated capital to make needed improvements to technical infrastructure.