US: assisted living the solution for struggling aged care homes

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A lesson from America. With nearly 300 US nursing homes closing their doors every year, Patrick McCormick, a partner in Plante Moran’s senior care and living practice, has outlined the challenges – and opportunities – facing providers there.

He points out that 30 years ago, nine out of every 10 Medicaid dollars for long-term care went to nursing homes. Now those same homes only get four of those dollars – the rest goes to home- and community-based services, including assisted living facilities.

Mr McCormick says Amazon’s recent guarantee of a $15 minimum wage will only add more pressure to the business model, which already has high labour costs.

There is a viable path forward for providers however – refurbishing their buildings and converting to assisted living which has much lower labour costs.

He makes a solid argument – it’s worth reading the full piece HERE.

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The Weekly SOURCE is the leading media for retirement living and aged care businesses, delivering sector-specific news through four mastheads. Operating as part of The DCM Group, The Weekly SOURCE also provides a directory of proven sector specialists and an insights exchange.