An updated study published by MetLife shares the 2010 costs for various elder care options. Here's the bottom line:
- Nursing Homes average $83,585 per year
- Assisted Living averages $39,516 per year
- The article quotes that the average cost for private home care is $21/hour and implies that 24/7 care would cost $183,456 per year. What the article fails to share is that Live-In care can often be provided at a reduced rate closer to $200/day and totalling $73,000 per year
- Adult Day Care costs $67 per day maaking the annual cost $24,455, but note that the other options above are 24 hour coverage whereas this is only daytime care
The full article details other trends, such as that the costs of assisted living and nursing home care have risen while home care has stayed flat. You can read the full article here.
Seeing statistics like this makes you really think and get nervous about what your clients will be able to afford, and of course what you'll be able to afford to contract for care for your parents. We at Ankota believe that the demographics (more elderly people and less available caregivers) will result in new models of care, such as a combination of caregivers for some hours of the day and tele-monitoring for the other hours (see a blog post about this concept here), or perhaps elderly people will move in with their friends and hire shared caregivers to deal with their needs. Home care agencies may want to innovate and deliver new services like these or others to differentiate and stay competitive.
A quick note of thanks to Laurie Orlov, our friend and aging in place expert. I was made aware of the MetLife study through her blog post here.
Ankota provides software to improve the delivery of care outside the hospital. Today Ankota services home health, private duty care, DME Delivery, RT, Physical Therapy and Home Infusion organizations, and is interested in helping to efficiently manage other forms of care. To learn more, please visit www.ankota.com or contact Ankota.