The economics of assisted care
by Cape Business staffThe cost of assisted living ranges from $1,500 to $5,000 a month, with the average around $2,500 to $3,500 per month. Base monthly rent also depends on whether the accommodations are semiprivate or private rooms, suites sharing bathrooms, studios with kitchens or one-, two- or three-bedroom apartments. The monthly rent is considered as room and board with daily meals provided, in addition to housekeeping, laundry and transportation services.
When searching out a facility, check how many meals are served daily.
Many assisted living facilities provide levels of care with a corresponding fee schedule. These might be described as minimal, moderate and maximum – or as care assist and care enhanced. A facility might use a numeric system from 1 to 3 or 5 based on the number of activities a resident needs with, such as bathing, grooming, dressing and medication monitoring.
These additional fees can add up to as much as $2,000 in additional monthly costs. Most facilities have additional charges for medications, personal hygiene and medical supplies.
At the same time, there are no costs associated with homeowner’s insurance, property taxes, home maintenance and repairs.
There are more than a dozen facilities on the Cape that are classified as assisted living – compared with independent living facilities and nursing homes. With the over-80 population on Cape Cod expected to grow substantially over the next decade, anticipate additional facilities across the region.
Cape Business sat down with Tracy Blake of Heritage at Falmouth to learn more about the industry and local market. Owned by the Cape Cod Healthcare, Heritage offers 56 apartments, including studios and one- and two-bedroom units complete with a private bath and kitchenette.
Why did Cape Cod Healthcare decide to invest so significantly in its own assisted living business?
There was a group of area leaders in the early 1990s who had a vision. They saw a need on the Upper Cape for people who did not require the level of care provided in a nursing home setting, but could not live safely home. That is how Cape Cod Healthcare decided to get involved in this business. Market research from the early 1990s pointed to the need for long-term care services for seniors on the Upper Cape. Falmouth is a well-populated town on the Cape with continued growth over the years, so it made sense to look in Falmouth. Heritage at Falmouth was built and opened in 1995; there are no plans for expansion.
Where are your residents coming from?
About 60 percent of Heritage’s residents are from Falmouth; 13 percent from other Cape towns; 21 percent from out of state; and 4 percent from Massachusetts towns outside the Cape. One hundred percent of the residents have family connections, mostly in Falmouth.
A new trend is an increase of our out-of-state population.
This follows the national trends of seniors moving closer to their children’s homes. Their children are of retirement age.
What is the competitive advantage of Heritage over competition?
Our reputation for services and staff; we are local and provide tailored services that address specific needs of each resident; we have the support of the Cape Cod Healthcare system and can draw on its resources as needed. We have been in service more than 10 years. We offer solid community support on many fronts.
It’s not that we have competition. It’s more that people will select other lifestyles for this level of care. For many, they prefer staying at home with support services such as Meals on Wheels or moving in with their children. There are home health agencies such as the Visiting Nurse Association.
What does a resident pay per month at Heritage?
Studios start at $3,800, one-bedrooms start at $4,000 and two-bedrooms start at $5,100.
What does a resident get for that money?
24-hour staffing, personal care services, room and board, dining, community services, health and wellness events and activities, housekeeping services and transportation.
What happens when it is time to leave assisted living for more focused care?
We work hard to help the residents and their families during any transition to another location, and we work with them in a way that is compassionate and sensitive. It’s never a surprise when people leave because we’ve been working with them all along on the transition. Our resident care director advocates and assists residents and their families when this need occurs. Continued assessments with communication with residents and their families are the norm. Appropriate plans, with support, are basic as we help everyone select appropriate options.
How does the presence of Falmouth Hospital next door serve as a competitive edge over other assisted living facilities?
Our location offers some Heritage residents peace of mind that an excellent hospital such as Falmouth Hospital is close by.
Where do residents find the money to afford Heritage or other competitive assisted living facilities?
Many people of this generation have made financial plans that support their long-term health care needs. Additionally, some have purchased long-term care insurance that covers assisted living costs. Medicare does not cover assisted living costs.
Assisted living facilities on Cape Cod include:
Heritage at Falmouth, 140 Ter Heun Drive, Falmouth, (508) 457-6400
Atria Woodbriar, Falmouth, (508) 540-1600, (800) 456-3183
Harbor Point at Centerville, 22 Richardson Road, Centerville, (508) 778-2311
Whitehall Estate, 790 Falmouth Road, Hyannis, (508) 790-7666
Heatherwood at Kings Way, 100 Heatherwood Drive, Yarmouthport, (508) 362-9889, (800) 852-0365
Mayflower Place, 579 Buck Island Road, West Yarmouth, (508) 790-0200
Thirwood Place, 237 North Main St., South Yarmouth, (508) 398-8006, (800) 248-5023
Brewster Place, 873 Route 124, Brewster, (508) 896-3252
Harwich House, 26 Pleasant Lake Ave., Harwich, (508) 432-5291, (800) 529-5291
The Melrose, 601 Route 28, Harwichport, (508) 430-7496, (800) 529-5291
Winstead Retirement Center, 328 Bank St., Harwich, (508) 432-4586
Chatham House, 33 Cross St., Chatham, (508) 945-2239, (800) 529-5291
Orleans Convalescent and Retirement Center, 60 Daley Terrace, Orleans, (508) 255-2328
Originally published in the Sep/Oct 2006 issue of Cape Business.
