Does Fee-for-Service Pricing Alienate Assisted Living Clients?

Does fee-for-service pricing alienate residents of assisted living?

It would seem to be a foolish question, as the a la carte pricing model is the norm for assisted living communities. It is often the reason younger retirees opt for assisted living homes rather than CCRC’s. However, there are numerous published articles implying that fee-for-service communities prey on unsuspecting clients by expanding their scope of care, often unnecessarily, for profit’s sake. Other articles call the process “secretive.”

A company that makes tracking software for the senior care industry, Vigilan, personalizes client billing so that the resident is charged only for the time an employee spends assisting them. Users of the company’s software say residents appreciate the carefully crafted bills. The software program differs from “level-of-care” service common in assisted living communities. Level-of-care service classifies residents based on their need for help w ADL (Level I, II, III, etc.) and charges a fixed rate.

Vigilan’s software is also used for staffing purposes. Using the operations software, aides are expected to report every service they provide and bill appropriately, preventing “service creep.” The expected increase in revenue would make it possible to employ more workers during peak service times. Employee morale would improve and turnover rates would decline.


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