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Eldercare Review | Monday, February 21, 2022
The assisted management industry faces facility shortages, while economic factors limit senior member mobility.
The assisted living industry is in turmoil. Simply put, there need to be more communities to house the growing number of seniors who require them. Nevertheless, just like any other business, when demand exceeds supply, costs spike, forcing millions of families to make difficult decisions about caring for their elderly loved ones. According to researchers, the persons aged 85 and up will treble by 2060. The solution to ensuring people have access to affordable, comfortable accommodation is complex. It presents a once-in-a-lifetime opportunity for the business community and creates new facilities to satisfy this need.
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Assisted living shortage: The lack of assisted living facilities is a multifaceted problem that has been exacerbated by recent events such as labor shortages, supply chain issues, and the general recession.
Although the economy has improved, assisted living developers still struggle with supply chain challenges and labor shortages. Facilities are not quickly enough to meet demand – there are currently roughly a million apartments on the market for approximately 70 million baby boomers. With inflation at a 40-year high, assisted living facility builders and managers bear hefty expenditures for everything from borrowing money to purchasing supplies. These additional expenditures pass on to average households whose earnings have stagnated.
Income: The average annual cost of senior care facilities in the United States is currently USD 44,880. Seniors typically have fixed salaries, making it even more difficult to cover their expenses, and some may feel guilty about putting an unfair burden on their offspring.
Long-term care insurance normally does not cover assisted living, so most people pay for it out of pocket.
Some seniors choose to live in nursing facilities, which are usually partially covered by health insurance or Medicare. While this is a viable option, it forces people who prefer the freedom and comfort of assisted living into a nursing facility with more limitations, sicker neighbors, and fewer liberties. Something needs to change when the question becomes trading quality of life for elder care, especially for our grandparents and elders who have given so much to the world.
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