As an owner or operator of a nursing home or continuing care retirement community (or CCRC, as they are often referred), you deal with risk on a daily basis. Risk management in nursing homes and CCRCs is never simple, and the very nature of your business and the age and variable health of your clientele means you’re faced with a wide range of risks around the clock. What you may not be aware of, however, is something that has the potential to bury your business but it might not be what you think.
The Hidden Risk You Need to Know
Simply put, people are living longer these days. Some are taking better care of their health and some are benefitting from constant improvements and innovations in modern medicine, but the fact is, people are leading longer lives. This can be difficult to account for especially in a CCRC environment, where costs are generally determined upfront based upon projections. Remember, just because people are living longer doesn’t necessarily mean they are living healthily with a longer life span often comes additional medical costs, and many facilities find themselves providing necessary services and housing to residents even after their initial deposits have run out due to moral or ethical considerations.
What You Can Do As an Owner
First, if you run a nursing home or CCRC that collects funds upfront, you may want to devote more attention to the ways in which you evaluate the anticipated costs of future care. You should also speak with an insurance agent about risk management in nursing homes, as well as what type of protection is available.