The Money Trail
Assisted living facilities will regularly charge more for care that would seem to be already covered in a monthly rate. Now we know why.
Last week, The Washington Post published a devastating article about Brookdale Senior Living, an operator of senior living communities throughout the United States.
It’s a must read because it provides an insight into the operations of an organization that penalizes residents when its own operations prove to be inefficient and ineffective.
Brookdale used an algorithm to determine staffing levels in facilities. The algorithm was developed 20 years ago by a group of a group of senior-housing executives who used stop watches to time professional caregivers as they completed their tasks. (Yes, this is really how they developed the standard for determining staffing levels.)
You won’t be surprised to learn that the algorithm didn’t account for variations in environment (how much walking a professional caregiver had to do, for instance, to transport a resident to the dining room) or care needs (a person with dementia will need more time during personal care).
The impact of this incorrect algorithm has been devastating. Patient care suffered. Staff were overwhelmed and demoralized.
Rather than change how they determine staffing ratios, the company just passed along more costs to the residents. It cost more to receive a basic baseline of care because of the company’s unwillingness to self-correct or, perhaps, the company’s desire to prioritize profit over care. Interestingly enough, The Washington Post notes: “Brookdale lost money in each of the past 19 years except 2020, and its stock price, which peaked at $53 a share in 2006, has petered to just $7.”
A few years ago, I spoke with a former family caregiver who was working through her experience caring for her mom who resided in a Memory Care Unit. The monthly costs of the facility were more than $10,000 or $120,000 annually.
“Where is all this money going,” she asked.
Wow.
I think of her question all the time now. When a facility is short-staffed, the pricing stays the same. Where does that money go if the money isn’t paying for a well-staffed facility?
The Washington Post article gave us insights into the answer.
It’s now time for us to advocate for transparency around the pricing and costs within facilities.
Where is all the money going?
(Image by 🆓 Use at your Ease 👌🏼 from Pixabay.)
Resources
Jennifer Richey, a Certified Caregiving Consultant, and I shared suggestions for caregiving challenges in the latest episode of Caregiver Support Live.
I connected with three family caregivers who also are only children caring for aging parents to share about their experiences. Watch our conversation.