Why the Price Tag on Assisted Living Facilities?

When we are making a purchase various thoughts run through our heads. We wonder if we will actually use the item, do we actually need the item, or if the item is worth the price. Sometimes the answer is no and we put the item back, other times it’s a yes and we buy it. Often, we put the item down to check the price somewhere else, such as Walmart, Amazon, Target, etc. We want the best deal on the item in question. As we’re looking at deals though, sometimes we come across an item that looks similar to the one we want but is much cheaper, and then we ask a different question. We ask why. Why is it so much cheaper at one retailer over another? We worry that the material is worse, that we’re going to get ripped off, or that we won’t even get the item and may lose money. These concerns can lead us to just get the original item, even if it is a bit more expensive. In today’s blog, we are going to be addressing the price of assisted living facilities and what we do to make our price worth it.

According to a survey, 2020 Cost of Care survey by Gensworth, the average monthly cost for a private room nationwide is roughly $8,000, while semi-private is roughly $7,500. Now, this monthly bill is not just covering room and board. For the average assisted living facility, the monthly cost covers functional furniture, food services, cleaning and laundry services, care by staff, nursing services, medication management and administration, and also activities.

Of course, there are still other costs that go into pricing that you may never see or even think about. Some of these costs include lawn care, building maintenance, staff paychecks, rent or mortgages for the buildings, and if transportation is offered, it will cover that cost as well. We at The Wildflower of Rigby cover all the previously mentioned services and building care, minus the transportation, but then there are special services that not every assisted living facility will provide. For example, we at The Wildflower of Rigby offer TV and cable hookup in rooms, a safe in each room, memory care, and more.

Lastly, for some assisted living facilities there is going to be a mark-up. Some
not-for-profit facilities may not have a mark-up, but many facilities do. What is a mark-up you ask? A mark-up is best explained in retail terms. So, using our previous analogy about checking various stores for a certain product, each store is going to have a different markup on the same item. A mark-up allows each store to make money on the product instead of selling it at the price they bought it for. In terms of assisted living, that means, we spend a certain amount every month to pay workers, maintain buildings, purchase hygiene products, etc. If we didn’t add a mark-up to our room prices that would mean that we charge you the same price that it is costing us to run all of this for you and the business owners would break even every month on cost. Since The Wildflower of Rigby is not a not-for-profit facility, we are not looking to break even every month, so we add a markup to the rooms. Just like a regular store does on all their products.

There you have it, the breakdown of the cost of a room in an assisted living facility. Once you see it broken down, it becomes a lot easier to understand and comprehend, and also allows you to know more about exactly what you are getting when you need to place a loved one in a home. It also allows you to compare facilities and find the best home for your loved one with all the necessities, and all the extras, at a cost that you can afford!

References:

https://health.usnews.com/best-nursing-homes/articles/where-does-my-money-go-when-i-pay-for-a-nursing-home