There have been many discussions about assisted living and CCRC in HD. As I learn about how they staff and manage these facilities, there are many unanswered questions.
Currently, about 65% of elderly are cared for by their families at home. For 13% of those who aren’t living with family, the gap is partially filled by assisted living establishments. The median cost of care is $5,900/month, but ancillary services are extra. That can bring that cost over $15,000/month. Every extra service is billed for maximum profit. Staffing shortages, more medical needs of patients due to older age, sparse state regulations, and profit driven private equity and corporate ownership has created an environment where compassionate care is not easy to find.
Choice of such facilities has to be made carefully. However, this is not always possible. In most cases, one has a week or so to make a decision which is “crisis driven.” When you visit such facilities, you are shown beautiful buildings, with nice lawns, fountains, and shuttle buses. I visited about half a dozen such facilities in multiple states and they are, no doubt, impressive. But the ground reality on daily care may be very disappointing due to staffing shortage and profit mind set.
Here is an article that provides a good overview of the industry and issues.
What have been your experiences with assisted living facilities? Are non-profits any better? How will you choose a facility for a loved one or yourself? Is assisted living in a CCRC any better?
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We searched the literature, we looked at articles with rating systems, we checked the Government website rating for Nursing homes. First, figure out what you want, we wanted a CCRC with Independent Living, Assisted Living, Skilled nursing and Memory Care. In other words, we were willing to downsize, live in an apartment after owning our 3 homes for a 46 year period. First ask your friends for recommendations, but to really learn go visit the CCRC’s. Yep, we did, and after visiting 10 of them, we learned where we wanted to live and all we needed to know. We did not pick the lowest cost, we picked the MOST APPEALING, and that was where the people made the difference, and the Admin seemed to be caring. I never thought I would spend more than my house for an apartment, and then a rent higher than my previous living expenses. We now have lived in this CCRC for 3 years, and have loved every minute. I call it our World Cruise because the people are exciting to learn about, the activities are endless, and the Dining is excellent. And you get back 90% of what you paid after you pass. I suggest making sure your CCRC is going to be around much longer then you are, and that it is a NOT for profit. Make the visits and you will learn all you need to know. And yes, it is not for everybody, we have relatives and friends that cannot bear to leave their homes! But living much more worry free, no bills, all maintenance covered, dinner every night, no hassles, is worth the price, and has a freeing affect.
You had done some extensive research before selecting the right CCRC. Wonderful to hear this success story. I have visited about half a dozen CCRCs, and will continue searching.
My wife has early onset dementia. I took care of her at home for 8 years, and she has been in memory care for nearly 5 years. The facility is excellent and very expensive. Care staff and nurses know the residents and their needs. The food is outstanding, and the facilities are clean and well laid out. Memory care prices in the Seattle area range from $12-20k/month. I am very grateful that we saved and invested. Best wishes to all families impacted by this terrible disease.
I’m not sure what the “ancillary services” that you mention consist of. That seems more like a skilled nursing home price.
My brother is in a local assisted living facility, and I have his POA. The current total monthly cost is $5175, about $85 of that is optional for cable TV and Internet. For the first 3 years he was there, the entire bill was paid by his Social Security, VA benefits, and a small ($500/mo.) pension. This year the total cost is a little more than his income and I expect that my sister and I will need to start paying a modest portion sometime next year after his assets are depleted.
The facility is not non-profit, and we have been pleased with them so far. My sister and I originally selected them with the help of a senior advisor, who operates somewhat like a buyer’s agent for purchasing a home. We looked at a couple of other facilities that had fees in the same range. A more upscale facility with the same owner, but a different management company, lists their assisted living fees as “from $5995”.
We live in New York State; the regulations are anything but sparse. The facility where my brother is changed their management company and the state took well over 6 months to approve the transfer. The facility notifies me of even minor falls. Like just about everywhere, they do have issues hiring staff, but they appear to pay competitive wages. I’m not aware of any significant issues with the quality of their care.
Selecting the right AL before we end up needing is critical. Your initial screening worked out well for you.
Talking with some AL managers, I learned that only a small percentage of residents have Long Term Care insurance. Mostly they pay from their pocket. Because of this, they delay going to AL as long as possible and that could be too late.
Article in link below makes some interesting points:
https://crr.bc.edu/do-older-adults-understand-healthcare-risks/
I have read recently that many CCRCs are being bought up/out by private equity companies which changes everything about what one signs up for – laying off employees, getting rid of quality food service, cutting activities and maintenance, decreasing the quality of life overall. I find that prospect terrifying. I can’t imagine anything much worse than having to move repeatedly in one’s 80’s or 90’s, seeking a place to live where you actually get what you signed up for. Anyone have knowledge about, or experience with, this happening? I’d love to know more because it’s time to start looking about.
BP
Hello Barbara,
Here are some links I came across. My own mother was lucky, we never ran into this but it seems like it’s happening more and more.
Perhaps, have a reputable elder care attorney review any contract before signing. Ask the tough questions:
What happens if I run out of capital, do I have a legal right to stay based only on current income such as SS and a pension? (Not just a promise.)
What if I need AL care, skilled nursing care, or memory care and there are no units available when I need it?
What happens if your organization goes bankrupt?
Are there any restrictions on you selling this to another organization at any time?
Read all the Google comments about any institution you consider.
https://fortune.com/2024/03/12/nursing-homes-for-profit-private-equity/
https://www.nbcnews.com/news/us-news/vietnam-vet-found-dream-senior-living-community-new-owners-jacked-rent-rcna195175
https://jacobin.com/2023/02/senior-housing-nursing-homes-rent-hike-private-equity-real-estate-investment
I think eventually the greed of some of these organizations will backfire on them. I wish you luck.
Your 4 questions are very important. I wonder if some others already in CCRC can answer these.
Here is an article describing issues. This may not be typical, but good to be aware. I found the comments section very educational.
https://finance.yahoo.com/news/couple-spent-840-000-moving-130400074.html
We discussed that article here. The couple in question moved into the CCRC after it had gone bankrupt twice. It should not have been a surprise when it happened a third time. I can’t access the comments.
The possibility of a takeover is one reason I prefer non-profits, as I think it’s less likely that one will be taken over. It also matters which state you live in, as any regulation is a matter for the state government. In NC a CCRC can’t change ownership without approval from the Department of Insurance.
My aunt will be 98 in November and moved into an assisted living building about 2 years ago . The AL building is part of a CCRC that offers Type A contracts, although my aunt came in as private pay. She uses a walker to get to activities and 3 meals a day in the dining room….she chooses from a menu. Less than 150 residents spread across 4 floors. Nurses station on each floor.
Her monthly fee is just under 8000; if she had come in as independent living her monthly fee would be less than half of that ( the billing department has accidentally sent me annual price lists for both private pay and independent living residents)
Part of the high entrance fee for Type A contract is long term care insurance and part of the monthly fee is also long term care insurance. I have received a letter ( as my aunt’s POA) at the beginning of the year which explains the one time tax savings for first time residents ( part of their entrance fee) and a tax savings for a portion of their monthly fee.
If my aunt has to move to personal care, her rate will double. Monthly fees will be about 15,000. Again,if she had started out in independent living, her monthly fees would be dramatically lower.
I think you have to be honest with yourself about your health needs, family history before deciding on any type of CCRC. Pay alot up front ( Type A) or pay as you go ( other types of contracts).
My aunt is a few miles from me in Lancaster County,PA where there are many choices for retirement living. I visit a minimum of once a week, staff knows me (very important to have staff know that someone is looking out for your loved one) residents know me. I feel and my aunt feels like she is well taken care of and can get help anytime.
Moving to CCRC/AL with private pay at 96 was economically very attractive. If she had moved in age 78 (average age for new entrants in a CCRC), and paid a lot upfront, the economics may not be as good. In that case, it will be even worse if she didn’t live this long to take advantage of Type A contract. Of course, so many factors are involved, economics is only one part of it.
You’re right, economics is only part of it. She might have been able to start with IL. I projected costs with both scenarios and I think at 5 years it made more sense to start with IL. Kinda morbid thinking at the time, but I was trying to be objective and be confident that her funds would work.
We asked her to stay at this AL for a week while I got settled in after a hip revision. It was called respite care, but to me it was a test drive! A few months later she had another stay for a week . When we looked at places in NJ ( Somerset County) she at least had a point of reference and ultimately, thankfully agreed to move close to me.
I want her to make decisions as long as she is willing and able to.
I have asked her every few months if she feels safe,if she is happy with the move away from her church and friends. She says yes. That keeps me motivated to be a good steward with her funds.
You are assuming that there is no value to being in Independent Living, but in my experience there is a great deal. I did decide against a Type A contract because I expect (hope?) to spend longer in IL than AL, although I still get a break on the AL price.
One of the advantages of a CCRC is that if/when you do move to AL you do so in a familiar environment, within an existing community and with less hassle.
Your aunt is so fortunate to have you! Taking the time to know the staff and other residents is a great idea.
I saw first hand the need to be visible when my aunt was in rehab after a hospital stay. Different doctor visits happen throughout normal business hours, staff on 2nd and 3rd shifts can update you on progress or changes in meds. It was an easy habit to continue in assisted living. Residents are simply her neighbors to me.
In the US, not even $11,000 a month can buy you dignity at the end of your life | Social care | The Guardian
The Guardian is known for a certain style of reporting that’s designed to create gasps. And they adore misleading headlines.
They buried the lead (because it’s not quite as sensational):
Day one when he started having memory issues, falling, was when you get on the waiting list for memory care, assisted living. If you do that, this story doesn’t happen, which is what the readers really need to hear about.
And the solution was leaving a place for promises of care at 1/3 the cost. That’s self deception. Don’t think you’re clever enough to find great care at 70% off.
I’m insanely empathetic to this family. They’re good people not wanting to face bad options. But the issue was what happens if you don’t deal with something in a timely way. Dad needed extra care for YEARS. It’s right in the article. I can so easily see how this happens. Who wants to think, dad, who made it 90 sharp as a tack, needs memory care, diapers and is starting his wind down.
Scary, depressing but truthful.
My spouse’s parents spent time in assisted living facilities. I’ll provide some of the experience. G’s father had Parkinson’s and her mother Alzheimer’s and she’s 92 and is currently in a specialized facility. Dealing with these illnesses has been instructional. In fact, G is currently visiting her mother and we were discussing the current situation last night.
G’s parents preferred to stay at home, but in both of their situations it became apparent that a higher level of care was necessary. Grown children may say they can deal with this, but in our experience it may be far more difficult than one anticipates. G cared for a grandmother who had dementia and lived to 96. She knew what to expect.
Making difficult choices is beyond the ability of some. 24 hour coverage is daunting. G’s parents, particularly her mother, resisted any care giver brought in, and even a chef hired to make custom meals. A lot was attempted to keep her in her home, as she wished. A CCTV camera installed in the main living area indicted that something needed to be done and was helpful when family discussions occurred. Management by committee is not a good method. The information supported the research that began in earnest, about 8 years ago.
One thing of great importance is a facility with multiple levels of care. Both parents were moved as their diseases progressed. It would be best to avoid this disruption, which can be quite stressful for everyone. G’s father’s Parkinson’s was not initially diagnosed and became apparent only after a year in a facility. It may seem to begin as dementia, but as the disease progresses the diagnosis can change. Even simple swallowing, talking and walking can become very difficult, necessitating specialized care. That required a move to a different facility.
G’s mother was the luckier because when it became obvious that her dementia required specialized care the family had the experience gained with the care of the father. They chose a facility which could provide a range of care and could accommodate Alzheimer’s patients should that be necessary, and it became so. “Ro” has moved once in four years because some things about facilities are difficult to uncover until one is a resident. I’d say it is best to plan and prepare for a relocation should it become a necessity. She’s in a facility today which will be for life. No further relocations are planned or anticipated. She was placed on hospice care once, but has rebounded. She is in a gradual, steady decline. She’s comfortable and happy and has come to like her place which is cheerful, has good food and gracious staff. However, all of the facilities investigated had limitations, and that includes coverage by staff.
Location is important, too. Some geographical areas are more expensive but one of G’s brothers is about 90 minutes away and can visit frequently as he desires. G visits 3 or 4 times a year, each for 10-14 days. There are nearby hotels and restaurants where G can stay, have outside meals with mom, and so on. We’ve found it is beneficial for family members to have the opportunity to decompress. Ergo the nearby hotels.
Frequent, quality contact is important. An experienced care giver was retained to spend time with Ro about 4 hours a day, 5 days a week. The caregiver provides an extra level of quality care and is an independent monitor. The caregiver keeps G informed beyond the information provided by staff. There are conversations about every other day. The caregiver takes Ro to doctor’s appointments, to the mall and other locations for walks and to restaurants. Ro does enjoy the facade of shopping and outdoor walks. Restaurants provided an added variety to meals.
These facilities have medical staff and Ro’s has two doctors on retainer. They are available for prescriptions, patient observation and consultation if something occurs, etc. They can support the patient’s other doctors and specialists and provide the family with frequent medical assessments.
I’d suggest to plan for the median costs, but include a caregiver should that become desireable. Loneliness is chronic and frequent discussions even with a dementia patient can keep those synapses firing and may be restorative. After G spends a few days with her mother, Ro seems rejuvenated. If G had her choice she would live nearby, but that isn’t practical, and G’s siblings decided upon the area in which the facility resides. It is 2500 miles distant.
Norman, Thanks for providing a detailed account of how to manage a very challenging care for two loved ones. This is very valuable for all of us.
Thanks, Norman, this was helpful. Chris
This is a very helpful overview, Norman. One of my two siblings is overseeing the care of the other sibling who lives 3000 miles away, with extensive help from on-the-ground family friends. Having an independent part time caregiver is something another family I know did for their widowed father in assisted living. If the resources are available for this extra level of care, it’s a wonderful thing to do.
Sundar, we know some. When my mom had a stroke in ‘21, she was not able to stay in her home long term by herself. Spouse and I did some of the research. Mom had too many resources at the time to do a Medicaid spend down, although I did call the area agency on aging in her county. There were not a lot of resources like there might be for a more populated area. Spouse contacted A Place for Mom and they were helpful with information. I had a friend who had retired from the state’s Job and Family Services, so my friend knew which facilities in the county we should stay away from. We came up with a short list and my sisters and Mom visited some of them. There was one in particular I advocated for b/c they would automatically let Mom stay if she ran out of money. It was also close to my brother. The other places did not guarantee she could stay if she ran out of money. My sisters let Mom pick where to go and it was not the place I wanted. We are now almost 4 years later and her money is getting lower. I don’t have financial power of attorney so idk exactly how much is left and if Mom will be able to stay where she is when the money is gone. I think she is at the point where an elder care attorney needs to be contacted about Medicaid spend down, but I have no say so. Chris
Spouse’s mom has dementia and I know we will be looking at doing this again in the near future. One thing we are finding is that the laws for people with dementia who are resistant to help favor letting them spend all their money, keep their drivers licenses, no help with financial institutions, medical places, etc if they are resistant. We are going to have to wait for a crisis and she will have to go where there is a bed rather than a nice place that she could choose and afford now if she wasn’t so bull headed. But what do I know, I am just the in law. Chris
Resistance to accepting necessary help is the biggest challenge, especially when the person doesn’t have a spouse to make safe decisions on their behalf. It can really be a nightmare, especially when the person still has access to a car.
Hello Sundar,
In honor of Mother’s Day, I’d like to share what I learned from my late mother’s journey in picking a CCRC. She did a great job! No one urged her to do this, she just decided on her own after being a widow for a few years.
Emotionally, it was as hard for her to leave her apartment in IL to go to
AL as it had been to leave her house. The care she received in AL
was good. However, I think the hospice care my father received inside
the hospice unit of a hospital was more sensitive.
7. My brother handled the administrative side when it got beyond her and
he said everything went smoothly.
I will read the article you supplied, thanks.
Of the AL’s I have visited, one was more like you said in #3, However, they don’t commit to long term support. Residents I spoke with seemed happy.
I don’t think that non-profits are any better than profit focused companies as they all struggle with staffing issues. I dealt with assisted living for a grandmother a few years ago – she was there for about 5 years before she passed away at the age of 103. Generally, my grandmother had a good experience. However, I was about 5 min away from the facility and was always there. This makes a big difference as the staff gets to know you – as such, you can monitor the care being provided and provide requested changes as necessary. I don’t know how I will handle it for myself or my spouse as it just seems so pricey and who knows what it will be like by the time that I need it. I haven’t been a fan of CCRC as I just don’t trust that an investment in such a place would be appropriately managed. I would rather be able to pack up and leave via a rental at assisted living if I am not happy with the way that the care is being provided.
Rental AL is a good option for flexibility. You can use it when the need arises. Doing the search beforehand and being prepared will greatly help.
Flexibility goes both ways. A rental operation can kick you out if you run out of money. My CCRC will keep me, and has a benevolent fund to back the promise. It has been in operation for over 30 years, and has yet to make someone leave because they can’t pay.
You make a good point. When I visited independent AL facilities, I was shocked to hear the average stay is less than two years as they don’t live as long. They go there only when things get really bad. So I am thinking moving to CCRC early for future use of AL only when you need does not make economic sense. Memory care is very different. Your thoughts based on your CCRC experience and observations would be valuable to us.
If you click on my screen name you will find two articles and one forum thread that I wrote on the topic.
Avoiding having to choose an Assisted Living facility at short notice is one reason I moved to a CCRC. The people in the AL section of my CCRC seem happy, and the apartments are either in our new building or recently renovated and enlarged. Residents in AL can eat in their own dining room, or in any of the Independent Living restaurants. They have the same access to facilities and events, of which there are many – not sure how many would be found in a stand-alone AL.
In a Type A CCRC the monthly fee would be the same in IL and AL. Mine is a modified Type B, so AL costs more, but still below market. In some CCRCs you would pay market rate for AL. I have a strong preference for non-profits when choosing CCRCs or ALs. Your interests are not aligned with management’s in a for-profit operation.
Kathy, I currently live in the RTP area like you. My wife and i have just started discussions concerning CCRCs. May I ask which CCRC you chose?
Ray, if you haven’t already done so, I recommend you look into taking the Stay Put or Move On (SPOMO) course at Duke Olli which I believe I mentioned in the comments on one of Kathy’s articles. My wife and I who also live in the RTP area took the course and found it very useful. The course structure is divided between aging in place and CCRCs and includes visits to several. We visited others following the course using information we learnt and now are on the waiting lists of 4 in the area. I also mentioned NACCRA which one can join for $20 or so and see the comments and concerns raised by members.
I believe NC State also has an OLLI class. The Cary Senior Center sometimes has a more basic class.
Although it was written a while back I still recommend Ruth Alvarez’ book on choosing a CCRC as a starting point. Once you get serious, read the Disclosure Statements on the NC DOI website.
Yes NC state does have a class however it is more limited and does not seem to have quite the depth of the Duke class which was started over 20 years ago and still has contributions from previous teachers. It might be beneficial to take both of the classes if time permitted as one might get exposed to different CCRCs and information. My wife and I are more active at NC State Olli which is a great resource overall.
Ray, I prefer not to put the name online, but if you make a comment on my blog it won’t get posted and I’ll contact you. Here: https://mytimetotravel.wordpress.com/