There was a time not too long ago when nursing homes were seen as a rock solid investment. And with the aging population and the large number of baby boomers entering retirement age, this was true up until recently. But, many factors have led to a slow, but steady decline in the nursing industry and many conflating factors are at cause. Let’s take a closer look at some of the factors affecting the nursing home industry.
Rising Costs
One of the biggest reasons why fewer people are turning to nursing homes is because of costs. Not only have healthcare fees increased dramatically over the years but programs such as Medicaid have undergone many cuts, which have prompted many to look at less costly alternatives. More and more are choosing to go for managed home care over nursing homes since they allow beneficiaries to receive pretty much the same level of treatment and assistance while still being able to enjoy the comfort of their own home.
Increase in Elder Abuse
Another factor that has affected the recent decline in nursing homes is the increasing number of elder abuse cases around the country. As a matter of fact, Elder Abuse Lawyer Stephen Garcia, founder of Garcia Law, has secured over $1.5 billion in jury verdicts and settlements from elder abuse cases alone since the firm’s inception.
According to a study by the National Center on Elder Abuse, a whopping 1 to 3 million elderly people have reported suffering abuse from their caregivers. According to the same study, 44% of nursing home residents have claimed to have suffered from neglect and 7% said they suffered abuse at one time or another. This may explain more people might be reluctant to opt for nursing home living and fewer relatives consider the option for their close ones.
The Rise of Home Care Service
Since Medicaid and Medicare have now expanded to community and home-based settings, we’re now seeing a resurgence of home care services. These types of services are growing in popularity among people suffering from manageable chronic conditions. In addition, private equity markets are also pushing more capital into the home care industry and in home-based technology solutions.
CareLinx, which has been described as the Uber of home care, is one of these solutions. CareLinx allows patients to access a wide network of independently certified caregivers at the touch of a button. In addition, the increasing number of assisted living options allow seniors to be more independent even if they have limited mobility.
CareLinx and other upstarts are also making it more difficult for nursing homes to maintain staff in major urban centers since these services allow them greater flexibility and often better remuneration than brick and mortar facilities.
The nursing home industry is at a crossroads at the moment and the spiral downward shows no sign of slowing down. Unfortunately, much of the industry seems to be heading towards extinction, with the exception of a few major chains and a handful of high end, specialty providers.
About The Author
Maggie Hammond is a retired nurse and freelance writer, exploring and writing in the U.S. in retirement. An advocate for public health and nursing qualifications, she feels passionate about raising awareness of the current strain on public health organizations.
