The level of resident monthly fee increases in 2018 is on par with the average increases over the previous five years. And workforce pressures will continue to drive fees higher next year, according to CFOs responding to the latest Ziegler CFO Hotline survey.
More than 230 not-for-profit senior living CFOs and financial professionals participated in the survey. When asked about the percentage change in monthly fees to existing senior living residents this year, the average percentage increase was 3.17%. That is slightly higher than the 3% average median increase from 2013 to 2017.
An overwhelming majority of survey’s respondents — 220 — said workforce pressures such as rising wages, cost of turnover and benefits costs were the primary driver in the increase. Twenty-two respondents specifically mentioned rising healthcare benefits, 29 mentioned inflationary pressures, while 13 cited increasing food costs.
Ziegler surveys CFOs on monthly fee increases annually. New to this year’s survey is a breakout of those increases by care level. While independent and assisted living costs rose by near-identical percentages, the rise in skilled nursing monthly resident monthly fees this year was affected by changing payment models, decreasing lengths of stay, declining occupancies and enhanced challenges with ensuring sufficient staffing.
Respondents were asked to identify the percentage by which the organizations plan to increase or decrease their monthly fees charged to existing residents next year. Those respondents expect a similar increase next year.
Written by Chuck Sudo