Nonprofit long-term care operators are dealing with millions of dollars in lost revenue and new costs as a result of the COVID-19 pandemic, according to a report Monday in Crain’s Detroit Business.
Detroit-based senior living operator Samaritas, for example, told Crain’s that it is forecasting a $5 million revenue gap on its $120 million annual operating budget as a result of the pandemic.
“That’s a conservative approach to where we think we’re going to be … based on reopening costs and lost revenue,” said Kelli Dobner, chief advancement officer for Samaritas, which operates five seniors living communities throughout Michigan.
About 68% of the firm’s revenue gap stems from lost referrals and fewer people being served across its programs, Dobner said.
Samaritas also has faced unbudgeted costs for personal protective equipment, cleaning supplies, technology to keep seniors connected to family and physicians and $1.39 million in employee appreciation pay and additional food costs.
Other nonprofit long-term care operators also are facing shortfalls due to rising expenses and falling payments, with recently affiliated United Methodist Retirement Communities and Porter Hills facing a $3 million to $3.5 million gap.
