By James E. Allen MSPH PhD CNHA
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Extra resources for Assisted Living Administration: The Knowledge Base, 2nd Edition
Increasingly, assisted living facilities, as well as nursing homes, are engaging hospice agency personnel for the terminally ill. Entering a hospice program may permit an assisted living resident to remain in the facility rather than being transferred to a hospital or nursing home. AsstLv2ed Part One MGP © Springer Publishing Company 15 Prospective Payments Medicare determines, by its reimbursement policies, where care is given and the way reimbursement is received. When, in 1983, legislation in Congress authorized Medicare to prospectively pay for care based on a diagnosis related groups scheme, the shape of health care in the United States was dramatically affected.
Plan to Change Your Plans No matter how carefully we plan, at any moment circumstances can change. The three main sources of residents today may be entirely different tomorrow. Perhaps this is why administering an assisted living facility will remain a challenging job—nothing remains stagnant in the health care field. Alas, the availability of residents with the ability to pay privately for their care will inevitably shrink, requiring many assisted living facilities to seek new funding combinations.
The current generation entering assisted living facilities may be the only group to have comfortable pensions that can fund their lifetime stays in such facilities. Today's workers' retirement benefits come more often as 401(K) funds rather than funded pension plans in which the worker gains vested rights to a lifetime pension. Workers who shift jobs sometimes cash out their 401(K) funds to buy a new car or to pay for a child's college education. Fewer and fewer assisted living facility applicants will come with guaranteed lifetime income.