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.
