WASHINGTON, D.C. — Half of assisted living communities are currently operating at a loss, with 73 percent of them operating at a profit margin below 3 percent. The “frightening” revenue numbers reflect the even more dire results in skilled nursing, where more than half of communities are operating at a loss.
That’s according to a recent survey by Washington, D.C.-based National Center for Assisted Living (NCAL). Respondents included 193 assisted living providers who took the survey between Aug. 8 and Aug. 10.
Among other results, 64 percent of assisted living providers said they won’t be able to sustain operations another year at the current pace of increased costs and revenue loss. Operators expect to continue incurring significant expense increases for supplies and staffing to deal with the COVID-19 pandemic, as occupancies stay depressed.
“Unlike nursing homes, assisted living communities have not received any direct federal funding,” according to the survey’s executive summary. “Only 15 percent received some federal funding from the Provider Relief Fund tranche for all Medicaid providers, for which less than half of assisted living communities are eligible. Only 16 percent have received any state government funding.”