A Simple Graph That Estimates the Annual Cost of Failing Health in Assisted Living Facilities
December 23rd, 2013

Failing health is the leading cause of resident turnover in Assisted Living Facilities (ALs). Estimating an AL’s annual cost of failing resident health can be accomplished using published data.  We developed a method of using published information (listed below) to construct the following graph:

Financial Calculator  (Click for larger view)

To estimate the annual cost of resident turnover due to either Health Attrition (failing health) or Residential Attrition (loss of a resident who leaves one AL to go to another AL), simply do the following:

  • Locate your facility’s total bed capacity on the horizontal axis (not census, but total capacity).
  • The corresponding value on the vertical axis is then an estimate of the annual dollars lost due to either type of attrition.

This is an estimate only using national data.  Individual ALs should use their own data and compare to these values.

We hope this information will be useful as a guide for finding opportunities to increase AL profitability.

 

These are the sources for this graph:

  • $4000 – an estimate of the average cost of a resident turnover
  • 50% – an estimate of the average annual AL resident turnover in 2013
  • 88.7% – the average occupancy of an AL in the US in 2013
  • 92% – ‘Health Attrition’ (the percentage of resident turnovers due to failing health)
  • 5% – ‘Residential Attrition’ (the percentage of resident turnovers due to a resident moving from one AL to another)





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