Half of Assisted Living Providers are Operating at a Loss, Unable to Sustain Operations Another Year: NCAL survey
Half of assisted living providers are operating at a loss, and 64% say they won’t be able to sustain operations for another year, according to survey results released Wednesday by the National Center for Assisted Living.
In the poll, conducted Aug. 8 to 10, 193 assisted living providers shared that they are facing a financial crisis similar to that experienced by nursing homes as their COVID-19 response has significantly increased costs while also affecting revenue streams. A majority (73%) of survey respondents reported operating at a profit margin of 3% or less.
Unlike nursing homes, assisted living providers have not received any direct federal funding while incurring significant cost increases for personal protective equipment (95%), staff “hero pay” (55%), cleaning supplies (50%) and testing (29%), according to NCAL. Poll participants shared that they expect to continue to incur significant expenses in response to the pandemic, especially for PPE (97%), testing (55%), hero pay (62%) and cleaning supplies (80%).
Read the full article from McKnight’s Senior Living.