How Do Assisted Living Providers Determine Their Charges?

The daily rate in assisted living can vary based on several factors, including:

1. Location: The cost of assisted living can vary significantly based on the location of the facility. The cost of living is generally higher in urban areas, which can drive up the cost of assisted living. For example, Bloomfield Hills, Michigan will be a higher cost than some parts of Monroe County, Michigan. Assisted living in Chicago, Illinois will cost more than assisted living in Woodstock, Illinois.

2. Level of Care: The level of care provided can also impact the daily rate. Assisted living facilities may charge more for residents who require more extensive care, such as those with dementia or other chronic health conditions or who are dealing with unpredictable behavior associated with traumatic brain injury. (See Special Circumstances Section.).

3. Accommodations: The size and type of accommodations can also impact the cost of assisted living. Larger apartments or private rooms typically cost more than shared rooms or smaller apartments. Always look for higher costs when sleeping is not semi-private.

4. Amenities: Amenities such as meals, housekeeping, transportation, and recreational activities may also impact the daily rate. Facilities that offer more extensive amenities may charge more than those that offer fewer amenities. On the positive side, those amenities can contribute to a higher quality of life.

5. Staffing: The number and qualifications of staff can also impact the cost of assisted living. Facilities with higher staffing ratios or more highly qualified staff may charge more for their services. An example may be programs that employ certified behavioralists, nurses, medical social workers, counselors, etc. whoa re crucial to the program’s successful operation.

6. Special Circumstances: These could include a resident who is unwilling or unable to recognize their limitations. Some throw themselves from their wheelchair, requiring additional staffing and supervision, affecting cost. Some refuse personal care due to phobias unless multiple personnel are present. Others use artificial breathing devices and are uncooperative with the efforts of one person to sanitize and manage the appliance.

7. Contract Terms: The terms of the contract can also impact the daily rate. Some facilities may offer month-to-month contracts, while others may require longer commitments or upfront payments.

Overall, the daily rate for assisted living is determined by a combination of factors, and it is important to carefully consider each of these factors when:

a. Selecting an assisted living facility.
b. Deciding if you can successfully challenge a rate as a reimbursement source.

A Trade Article published by the clinical
response and healthcare administration team
of Direct Care Training & Resource Center,
Inc., an international long-term care
consulting, project management and technical
advice firm.

Another Blog Post by Direct Care Training & Resource Center, Inc. Photos used are designed to complement the written content. They do not imply a relationship with or endorsement by any individual nor entity and may belong to their respective copyright holders.

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