By Rod Burkett, President and CEO of BMA Management, Ltd.
The need to develop and operate affordable assisted living and memory care communities is tremendous.
• Currently, 40% to 60% of those individuals of an age when they are most likely to need assisted living or memory care lack the financial resources to afford the monthly fees charged by most of the communities in operation or under development.
• Looking to the future, reports indicate that the Baby Boomers will have significantly less financial resources available to them in their retirement years than their parents.
|Affordable assisted living community
serves seniors of all incomes
In a Blog posted last week, Arianna Huffington noted that more than one-third of workers here in the United States have less than $1,000 in retirement savings and more than half have less than $25,000. Nearly three out of every five workers in the U.S. say they have debt problems.
The information comes from a study by the Employee Benefit Research Institute (EBRI). They do not include any value that workers might have in a home that they own.
In the Blog, Arianna cited another study that indicates that among the middle class here in the U.S., nearly half will be poor or almost poor in retirement.
According to MetLife in its most recent survey of long-term care costs, the average monthly base rate for assisted living nationally tops $3,500, or more than $42,000 a year.
The rates vary considerably from one part of the country to another. For instance, the average base rate in Connecticut was more than $4,900 a month; in Illinois and California, it was more than $3,850; and in Arizona, it was less than $3,200 a month. The highest average base rate was in our nation’s capital Washington, D.C., where it was more than $5,900 a month.
These figures do not include any additional charges for services that may not be part of the base rate such as medication management or administration; bathing and dressing assistance; and personal assistance with transferring, toileting, eating and continence care.
The good news is that assisted living can be much more cost effective than a nursing home and more cost-effective than home health care, depending on the intensity and frequency of the services that a person needs.
Nationally, the average base rate for a private apartment in assisted living is nearly 50% less than the cost for a semi-private room in a nursing home. The cost of three hours a day of home health care, which is cited as the national average, adds up to more than $1,900 a month. This figure does not include all of the other living expenses that are usually included in the base rate for assisted living. Property taxes, insurance, maintenance and repairs for homeowners; rent; food; utilities; and emergency alert system tend to be among the biggest costs.
What all of this tells me is that there is a large growing need for affordable assisted living and memory care communities that can appeal to as broad of a socio-economic base of prospects as possible. This includes communities that can serve individuals who receive financial assistance through a Medicaid-waiver program for assisted living similar to the one in Illinois.
From our experience as the national leader in developing and operating affordable assisted living communities, charging lower fees for assisted living and memory care and accepting residents on a Medicaid-waiver does not have to mean sacrificing quality in those things that matter most to residents and their families.
It also does not mean sacrificing an appealing bottom line. Our assisted living and memory care communities are known for having the highest occupancy rates and strongest operating margins.
If you are considering an assisted living or memory care community for yourself or for a loved one, we invite you to take a close look at the communities we operate.
NIC) National Conference in Chicago or talk by phone. To arrange an opportunity, call Christine Cousin at BMA at 815-935-1992, ext. 221, or e-mail her at firstname.lastname@example.org.
All affordable assisted living communities managed by BMA Management, Ltd. are certified and surveyed by the Illinois Department of Healthcare and Family Services. All assisted living communities are licensed and surveyed by the Illinois Department of Public Health.
“BMA Management, Ltd. is the leading provider of assisted living in Illinois
and one of the 20 largest providers of assisted living in the United States.”
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