In: Operations Management
Answer
Supported living services do not have to follow federal requirements. Non profit companies manage and run the bulk of the assisted living facilities. Indeed, a recent study found that around 70 percent were for-profit, and 27 percent were non-profit. That's a big change from 2001, when 88 percent became for-profit and just 12 percent non-profit. A few reasons have been given for the domination of assisted living facilities in non-profit management. They include the fact that most residents who are assisted pay with their own funds, or family funds. Owing to the high degree of self-payment, for-profit developers will demand consumer prices unencumbered by policy repayment constraints. Second, the relative scarcity of federal resources has meant a comparable absence in government oversight, making participation in assisted living safer and more enticing than in other forms in long-term care. This can be seen from the changing property characteristics which are changing.
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