Assisted living looks for an assist

Throughout the COVID-19 pandemic, nursing homes have continued to be a focus given the threat that the virus poses to seniors. Residents of nursing homes account for more than one-third of deaths in our nation. 

Assisted living facilities have been excluded from federal relief aimed at nursing homes and other providers. These communities are meant for socializing among seniors who might need some help but can largely function on their own, unlike nursing homes, which provide round-the-clock care.

It is difficult to tell how this has affected these communities since they are not subject to any federal reporting requirements. The state data suggests that they are experiencing fewer cases and deaths than nursing homes. However, operators are reaching out for assistance now as the costs for protective equipment and COVID-19 testing have accumulated. The largest operator with 741 communities, Brookdale Senior Living, expects to spend $60 million on virus-related expenses by the end of the month.

Due to the virus, the facilities have not been able to take in new residents and have also been losing residents which has created a decrease in revenue. Residents typically pay out of pocket and the average monthly cost is about $4000 a month.

The facilities that accept Medicaid will soon begin receiving funds for provider relief under the CARES Act. Although it is a start, operators say it is not enough. 

See Angelica LaVito, Assisted Living Looks for an Assist, Bloomberg, June 15, 2020. 

Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention.