The federal government gives money to the state government for Medicare. The state then creates their own program based on the needs of the residents in their state. Most states have a formula that basically says that a senior should prove that he/she had no income and no assets.
Their income, if they’ve got income (example: from social security $1,000 a month), the typical formula is they’ll say to that resident: “We’ll let you keep $100 of your own social security. We’ll take the other $900 and apply that towards the assisted living.” Then they’ll say, “We, as a state, we’re willing to pay $60 a day.” That’s $60 x 30 days/mo., that’s $1,800/mo. Out of your social security, you’re going to pay the first $900. The state will only pay the extra $900. That means the homeowner is going to get $900 from the state and $900 from the social security for a total of $1,800 a month. I’ve already told you the average cost is $3,750 per resident, per month.
Your Question: How can I operate a profitable business at half the rate of average?
You can’t have a lot of caregivers. You can’t have great food or a great facility. There’s not enough money on the table. That’s why I train you to focus on people who have the money to pay.
We can only take care of so many people. Let’s focus with the ones that can afford to pay us for the great service we will give them so we can help them, have a great product and make some good money doing good and doing well.
If you have more questions about residential assisted living and how you can get started, go to ralacademy.com.