“LTCG’s Annual Cost of Care Report Reveals How the Global Pandemic and Other Industry Trends Impacted Long Term Care Costs”

LTCG’s Annual Cost of Care Report Reveals How the Global Pandemic and Other Industry Trends Impacted Long Term Care Costs,” LTCG, Business Wire


Quote:

“The COVID-19 pandemic had a significant impact on senior care recipients and care providers. This year’s data reflects a notable shift in claims from facilities to home-based care in 2020, which accelerated an existing preference by consumers to age at home. In the face of that trend, home care providers had to compete for scarce caregivers, while facilities battled higher costs amid lower occupancy. LTCG’s study found that the average hourly rate for a home health aide in 2020 was $25.62, an increase of 3.9 percent over the prior year, and above the five-year annual growth trend of 3 percent per year. Meanwhile, the average per-visit rate for a registered nurse in 2020 was $146.86, an increase of 6.3 percent over the prior year, potentially reflecting increased demand for nurses during the pandemic. The research also shows that facility prices were mixed. Average skilled nursing facility rates increased between 2.5 and 2.8 percent in 2020 depending on room type, which is consistent with their five-year compound annual growth rate. However, assisted living facility prices reversed a five-year growth trend of between 1.5 and 2.3 percent, falling between 0.4 and 1.8 percent versus 2019.”

 

LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

We’ve requested a link to the source document for these findings and will pass it on when received. Our thanks to Center-corporate-member LTCG for this information. Who expected ALF rates to decline, but nursing homes to increase during the pandemic? Very interesting.