By Audrie Martin
Senior living operators have long struggled to provide affordable services for middle-income older adults, especially in memory care. The high level of care needed for residents in memory care facilities leads to increased staffing costs, resulting in higher rates. Despite the great need for more affordable senior living options, a report by NORC at the University of Chicago predicts that millions of older Americans will be unable to afford assisted living by 2033.
The high cost of memory care is a growing concern as the population ages and the prevalence of Alzheimer’s and dementia increases. With out-of-pocket expenses reaching $6,935 per month on average, many older Americans cannot afford traditional senior housing. The total cost of treating Alzheimer’s and dementia is expected to reach $1 trillion by 2050.
While challenges exist in providing affordable middle-market memory care, operators like Innovation Senior Living and PACE are working towards solutions. By reimagining payment models, increasing Medicaid reimbursement, and focusing on collaboration and technology, the possibility of middle-market memory care becomes more attainable.
As the industry looks towards the future, advancements in treatments for dementia and innovative technologies may help reduce costs and improve quality of life for memory care patients. Middle-income memory support is achievable with early diagnosis, investment in healthcare, and ongoing technological advancements.
