The National Center for Policy Analysis’ John Goodman has an interesting piece in the March issue of Health Care News that’s well worth a read. It discusses the private market for custodial care for the elderly. A snippet:
The most visible response to the quality problems present in
government-sponsored elder care is the growing market for private
assisted-living communities. This highly entrepreneurial development,
which occupies the high end of the private elder care market, offers
seniors a progression of services ranging from normal condominium
living to full-service nursing home care.In essence, seniors
check in to these communities with the ability?and the intent?to remain
there for the rest of their lives. As their health deteriorates, the
services they receive change accordingly.The average cost of
this type of care is $3,031 per month, according to the MetLife Mature
Market Institute?a price that is out of some patients? reach. However,
that does not mean the rest of the elderly population is relegated to
government-run hospice care. In fact, in some ways there is even more
innovation occurring at the lower end of the price spectrum.
Goodman estimates the market value of the unpaid care to adults (by children, spouses, etc.) at $114 billion a year.
