Assisted living communities have come under increased scrutiny during the COVID-19 pandemic. Challenges include deepening financial pressures, sicker residents, limited oversight and too few employees. Home to more than 800,000 people nationwide, the communities now face a crisis that could force some operators into bankruptcy, roil the industry and even close some facilities, Kaiser Health News reported Thursday.
More than 700 cases of COVID-19 at assisted living communities had been reported in at least 29 states as of Wednesday, according to public health authorities and news organizations.
The article pointed to Capital Senior Living as a case study of the new dangers facing the industry and the people it serves. The Dallas-based company, which owns or operates more than 120 senior communities nationally, told investors on a March 31 conference call that residents at three of its facilities had tested positive for the coronavirus.
But even before that, the company was ailing. Its stock had plummeted 80% since late February. Last week, the company disclosed a 2019 loss of $36 million.
Some experts say the pandemic looks poised to exacerbate the industry’s finances even further, as some residents lose their ability to pay amid the faltering economy and caregiving costs escalate. Fragile economics compound the threat of the virus within assisted living facilities, which are less regulated and medically equipped than nursing facilities, and still serve many of America’s most vulnerable elders.
“In many ways, today’s assisted living residents are yesterday’s nursing home residents,” Robyn Grant, director of public policy and advocacy at the National Consumer Voice for Quality Long-Term Care, told Kaiser Health News. “You have a perfect storm, with the needs increasing while [regulatory] requirements have not kept up.”
