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There is no doubt that the demand for long-term care services will rocket over the coming decades as the number of elderly people in the population increases. The challenges, therefore, are how that care is going to be delivered and who is going to pay for it. Caregiving is expensive and it is not yet clear who is going to pick up the tab. This leaves the industry in a difficult position.
The future of the long term care industry
Long-term care is an essential service in our society. It provides facilities and support for predominantly elderly people who are suffering from disabilities and illnesses. The sufferers require care when those illnesses or disabilities are severe enough to stop them from being able to carry out basic life tasks, such as bathing or cooking, unaided.
Long term care does not have to be bought in. In some families, it is provided by family or friends. In other cases, it is a combination of informal support and day care assistance. However, there will always be a proportion of people who require adult care in residential settings, such as assisted living facilities or nursing homes.
This sort of care is expensive and it can be a struggle for families to find sufficient resources to pay for it. Medicaid is one source of financial assistance for some families and nearly two-thirds of long-term care expenses are paid for by Medicaid in the USA.
Some people mistakenly believe that their private health insurance will cover long-term care but that is often not the case. There are only a few policies that cover long-term care and private insurance pays for just over 10 percent of long-term care costs overall in the USA.
Providing an excellent service to clients
In the face of growing financial uncertainty, long-term care providers need to maintain an excellent level of service to their elderly clients.
The cost of upkeep for long term care premises is considerable. Special equipment is needed which requires huge capital investment and heating and lighting bills can be very high. Taking time to thrash out the best possible deal with providers is the only way forward.
There can be difficulties if there is a delay in receiving Medicaid or private payment of medical and care invoices. Long-term care providers need to locate the best medical factoring company for their needs and discuss how they could raise cash using this service.
Increased cash flow is essential for investment in a care provider’s greatest asset, namely their employees. Recruitment and retention of highly trained and committed staff are the biggest challenges facing this sector. To retain staff you must be able to offer attractive salaries and enhanced benefits.
Businesses in the long-term care sector will need to be innovative in their approach to balancing revenue with outgoings. New technology will streamline the service and cut down on the hours of paperwork that this type of service requires.