Senior Citizens: Why are nursing homes so expensive?
Answers
At first glance, nursing homes may seem ridiculously expensive, creating a financial burden for anyone who’s considering this option. Still, if we use our logic, the cost of nursing home care is high for a couple of valid reasons: Medications, facility, and staffing all cost a considerable fortune, with the latter two depending on the quality of the services.
Like any business, nursing homes need to charge an extra cost to cover their resources and make a profit. Also, it’s noteworthy to mention that the nursing homes’ fee schedule is what the insurance companies look into while making decisions about paying them.
Nursing homes face the risk of being reimbursed if they set their fee schedule too low, so they have an understandable amount of challenges to overcome. Another example is the CNA support and the consumption management that limits their budget.
It is expensive to care for a loved one in a nursing home; you are right. But, come on! This is due to the high cost of staffing, medications, facilities, and more. Nursing homes must charge higher rates to cover their costs and make a profit.
Because they’re for-profit, private facilities that benefit from the country’s lack of healthcare for the elderly, people in countries with universal healthcare do not have to go bankrupt to pay for their parents’ care.
The for-profit business understands that it can wipe away a senior’s life savings and any inheritance set aside for their children with no alternative. If your parent can’t be cared for at home, you have to pay for it.
As a result, they charge it because they can and because the US government won’t pay anything until your assets reduce to less than $2,000. It’s a looting system that pays workers (primarily foreign) very minimal wages and provides nothing like the luxury that $10,000 per month should deliver.
Because of their services, it’s basically like living in a hospital where the doctors and nurses provide you with entertainment besides your medical needs. When done similarly to a nursing home level of care, the private expense of having these services in your home can quickly add up to thousands of dollars. Don’t get me wrong. I’m not saying nursing homes are inexpensive; if you or your loved ones need this level of care, a nursing home may be your only practical option.
