As you probably know, the U.S. spends more than any other country on health care: $13,000 per person every year, compared to Japan, for example, that spends $4,700 a year. (Japan also has the longest life expectancy: 87.6 years compared to our 79.3.) The main reason for our outsized expense is that our health care system focuses on maximizing profits. Compared to other countries—which regulate the industry—we allow the market to operate more freely, a situation that began in the 1980s when the U.S. began moving toward a laissez-faire economy. (Competition often fails to bring down prices because the health care sector is so complex, with opaque pricing and bureaucratic insurance plans.)
Assisted
living facilities, which are a case in point, are home to 85,000 older
Americans. Half of these facilities earn returns of 20 percent or more than it
costs to run them—far higher than the money made in most other health sectors.
Many facilities charge $5,000 a month or more, then layer on extra fees: $12
for a blood pressure check; $50 per injection (more for insulin); $93 a month
to order medications not used by the facility; $315 a month for daily help with an
inhaler.
In searching the internet, I came across ads for going into
the assisted living business. One said, “You can generate $36,000 of gross
monthly income and net $10,000 of monthly cash flow by converting
one single-family home into an Assisted Living Home (ALH). It’s easier to
do than most people think.” Another site displayed this title: “How to make 42%
profit margin in senior housing,” as touted by the CEO of Eldermark. In his
talk he said this: "You have to dehumanize the fact of the person and call
it a unit, because that's essentially what it is: unit inventory."
Enough said.
For an introduction to this blog, see I Just Say No; for a list of blog topics, click the Topics tab.
Yuk, I am so glad that you're addressing this topic. I am in conversation with my long term care insurance company. My monthly fee has doubled since I initiated 20 years ago. My goal had always been to stay in my own home with hired assistants. I would like to keep in conversation with you on this topic as I gain more information. I was not aware that the fees on my contract would change. I would invite your other readers to comment to your blog and or to me directly.
ReplyDeleteA woman who worked for 40 years and lives 40 more will exhaust every resource, leaving no inheritance and dependent on Medicaid. Meanwhile, healthcare providers conspire to keep us alive—for the money.
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