How Are Rates Established In Adult Care Homes
How is Pricing Determined within Adult Care Homes?
The owner/provider of the home decides how to set pricing for their home. Pricing is almost always based on what the provider feels is an appropriate charge in order to operate their home. Here are the ways in which a care home may opt to present their pricing:
Based on the assessment
Almost all assessments are the same. They are documents intended to define the specific care needs of a resident. When the provider reads through the assessment, they are giving consideration as to how much hands-on care and diligence must be given to a resident to keep them safe and content. Pricing may be quoted on what seems to be almost an arbitrary basis, but it is typically based on whether the older adult will need light, moderate or heavy care; and what the specific tasks are that need to occur to deliver quality care. A primary factor in calculating cost is whether the older adult is able to sleep through the night, or how often they need a caregiver to help them during the nighttime.
Levels of care
Some homes publish rate levels such as: Level 1, Level 2, possibly up to Level 5. Within each Level of Care the home should provide examples of the types of needs someone at that particular level of care may need.
Points
Very few care homes utilize a point system. The various care needs are given a point value. The provider will utilize the assessment to calculate the number of points a client may use in a given time period, which is then multiplied by a factor to yield a daily or monthly rate.
Rate increase
Some homes charge only an annual cost of living increase; whereas other homes increase rates based on their occupancy levels, staffing needs and their need to generate a profit. Adult family homes are constantly trying to balance the needs of their residents, which are ever-changing.
If the amount of care a person receives increases, there is typically an accompanying increase in daily or monthly fees. Some homes charge flat rates that may be predictable and defined in the residency agreement.
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