Compare the benefits of for-profit and non-profit assisted living communities.
When weighing options for assisted living (AL), a key decision is whether to compare for-profit VS non-profit communities. On the surface, these types may seem similar, providing housing, meals, activities and care. But key differences in services, costs, size and care philosophy impact experiences.
This overview will compare for-profit VS non-profit assisted living in areas like:
- Ownership models
- Average monthly costs
- Staff-to-resident ratios
- Amenities
By understanding differences between non-profit and for-profit assisted living, you can determine the best option for your needs.
What is Assisted Living?
First, a quick primer on assisted living. These residential communities provide:
- Private living quarters (studio, 1-bedroom units)
- Meals and snacks
- Assisted daily living services
- Medication assistance
- Recreational activities
- Some health care
Residents pay privately, while some facilities accept Medicaid waivers or other assistance programs. AL bridges the gap between independent living at home and round-the-clock nursing home care.
Comparing Non-Profit vs. For-Profit Assisted Living
Non-profit and for-profit AL communities have distinct differences that influence resident experiences. Here’s an overview of how these models differ:
Ownership & Mission
- Non-Profit AL: Owned by governmental, religious or charitable organizations. Serve a charitable mission vs maximizing profits.
- For-Profit AL: Owned by private companies or individuals seeking profits. Prioritize financial returns and investor goals.
Community Size & Feel
- Non-Profit AL: Tend to be smaller communities with a more intimate, less institutional feel. Make relationship-building between staff and residents a focus.
- For-Profit AL: Can be small, but national chains dominate the market. For-profits are more likely to operate large communities focused on efficiency.
Quality of Care & Staffing
- Non-Profit AL: Mission-driven approach leads some non-profits to provide higher staffing levels and more personalized care. But quality varies significantly.
- For-Profit AL: Staffing driven by budgets rather than level of need. But many for-profits offer excellent care – quality varies more by community than tax status.
Amenities & Ancillary Services
- Non-Profit AL: Amenities depend on budget – some provide lavish accommodations and extras, others more modest. Most outsource services like therapy.
- For-Profit AL: Use amenities as marketing tools. More likely to offer salons, gyms and luxury features. Also maximize ancillary revenue from therapy, home care and other services.
Expense for Residents
- Non-Profit AL: Monthly fees are generally lower. But fewer accept Medicaid waivers which provide public assistance funds to low-income residents.
- For-Profit AL: Higher monthly costs on average, but more provide financial assistance programs or accept Medicaid waivers.
As this overview shows, quality care relies more on the individual community than tax status. Do in-depth research and visits before choosing any assisted living facility.
Who Runs Assisted Living Programs
One major difference comes down to ownership and mission. Let’s look deeper:
Non-Profit Assisted Living
Non-profit AL communities are managed by:
- Religious organizations
- Charitable foundations
- Government entities
- Other nonprofit groups
They serve a charitable mission rather than chasing profits. Any excess revenue gets reinvested to serve residents instead of paying investors.
Non-profit communities often have a faith-based element or social cause at their core. Activities and operations align with the values and purpose of the operating group.
For-Profit Assisted Living
In contrast, for-profit AL communities aim to optimize financial gain for private owners and shareholders. This is the fastest growing segment, with about 80% of AL now operating as for-profits.
Most for-profit AL chains are regionally-based or national in scope. The largest players operate hundreds of communities across dozens of states.
Size of Assisted Living Communities
Tax status seems to play a role in the size of AL communities:
Smaller Non-Profit Residences
Non-profit AL communities tend to be smaller in scale. They usually provide more limited services and less lavish amenities compared to large national chains.
The small size often creates a warmer, more connected environment. Staff, residents and family members often form close-knit bonds in these intimate settings.
Larger For-Profit Providers
Most leading AL providers are for-profit chains operating multiple large campuses. Size can be an advantage, giving them efficiencies and economies of scale.
But critics argue giant communities lose the “family” feel many want from assisted living. Care may also grow more institutional as operators focus on containing costs.
Staff-to-Resident Ratios
Staffing levels play a major role in determining the quality of care and life provided by any AL community.
Potentially Higher Ratios at Non-Profits
Some non-profits maintain higher staff-to-resident ratios than typical for-profit centers. Since they reinvest surplus income rather than distributing profits, they can elevate staffing.
Higher ratios allow team members to provide more personalized and attentive care. But funding realities mean not every non-profit AL achieves robust staffing numbers.
Cost Concerns May Limit For-Profit Staff
Meanwhile, for-profit operators have to achieve profit margins expected by shareholders and investors. Controlling costs is key, so they calculate minimum staffing needed to deliver adequate care.
Budgets dictate staffing levels more than resident acuity levels. Still, many for-profits meet or exceed state minimum staffing requirements.
Daily, Monthly, and Total Costs
Affordability is often a top factor in choosing assisted living. Pricing also differs for non-profit vs for-profit communities.
Daily Non-Profit Rates Are Usually Lower
On average, non-profit assisted living costs less per day than comparable for-profit care. Without profit demands, they can keep budgets tighter.
According to a 2021 Cost of Care Survey, the national average daily rate at non-profit ALs was $129 vs $160 at for-profit residences.
But Monthly Costs Vary More by Location
However, monthly costs depend more on where you live rather than tax status. Rates run higher in areas like the Northeast and Pacific.
The same survey found average 2021 monthly non-profit AL costs spanning from $3,750 (Midwest) up to $6,405 (Northeast).
For-Profits May Offer More Financial Assistance
One advantage of some for-profit providers is a wider array of financial assistance programs. Chains can leverage scale to fund assistance and accept Medicaid waivers.
Make sure to ask about sliding scales, charity care and other options to offset costs as you evaluate communities.
What to Look for When Choosing Between Non-Profit and For-Profit
Focus more on quality of care, staffing and community culture rather than just tax status. Key steps for evaluating any assisted living provider:
- Tour multiple times, including meals and activities
- Observe staff interactions with residents
- Review state inspection reports
- Ask about staff-to-resident ratios
- Clarify what services and amenities are included in costs
- Determine if financial assistance is available
- Compare For-Profit VS Non-Profit Assisted Living
Finding the best AL community means doing your homework. Spend time visiting potential residences and trusting your instincts during tours. With careful research, you can find an excellent assisted living option regardless of its tax designation.
Contact us at 832-371-6600 for a free consultation to share the challenges you’re facing, and to learn how our personalized home care services can help you.
Home Matters Caregiving proudly serves the Houston Metro area providing care for seniors wherever they call home.
