Can Owners Live in Their Assisted Living Facility with Residents?
Sep 10, 2024
This blog will discuss a unique topic: can the owner of a residential assisted living facility live in the same residence as the residents? If you have ever wondered about this, you've come to the perfect place. This question is more than just logistics; it also addresses the quality of care, legal implications, and the overall dynamic of the living environment.
Consider being both the manager and a resident in your own facility. It could provide unrivaled monitoring and a strong personal relationship with your residents. However, it can potentially create fundamental issues about privacy, borders, and regulatory compliance. We'll review the advantages and disadvantages to give you a clear picture of whether this unique living arrangement is right for you and your business.
Check out the video, too:
The Concept of a Live-In Caregiver
What is a Live-In Caregiver?
A live-in caregiver is someone who lives in an assisted living facility and is responsible for caring for the residents. In some situations, the facility owners may take on the role of live-in caregivers. This arrangement is especially viable and frequently practical in smaller, residential-style assisted living residences, where the caregiver may be available to the residents around the clock and provide personalized care and support.
Types of Facilities
Assisted living facilities generally fall into two main categories: residential care homes and commercial facilities. Residential care homes are smaller, resembling traditional houses, and are frequently run by an owner who lives on-site and acts as a caregiver. This type is preferred for its homelike environment and may be permitted by local zoning rules. On the other hand, commercial facilities are much larger, typically with 16 or more beds. In these circumstances, it is less possible for employees to reside on-site, which is frequently restricted by municipal restrictions.
Real-Life Example
I have personal experience with this model. The facility we purchased in Idaho was previously owned by a family who lived on the premises while operating it. Their hands-on approach allowed them to ensure high-quality care for their residents, and the owners' personal involvement created a warm and inviting atmosphere for the residents.
Zoning and Legal Considerations
Working with Local Authorities
Before deciding to move into an assisted living facility, you should contact the city's zoning and planning agencies and the local health agency. These agencies will provide advice on the precise regulations that must be followed. Obtaining this information allows you to ensure that the facility complies with all applicable laws and regulations, avoiding potential legal complications or being shut down.
Federal Regulations
According to federal law, individuals who are legally required to care for a family member residing in a care facility are prohibited from receiving Medicaid reimbursement for the services they provide. This means that if you are legally required to care for a family member in the facility, you cannot receive Medicaid compensation for the services you provide and may not be able to collect any money at all in this scenario.
Financial Implications
Reimbursement Models
Living in the facility has no adverse impact on your reimbursement model. This means that if a caregiver lives in the facility, your reimbursement amount will not be reduced. Some families may even be willing to pay a premium for the peace of mind provided by having a live-in caretaker. This arrangement could be viewed as a beneficial benefit for families, and they may be willing to pay more for this level of care. It's vital to highlight that Medicaid focuses on the quality of care delivered, not the caregiver's living arrangements. This underlines the significance of providing high-quality care regardless of the caregiver's current living situation.
Premium Pricing
Having a live-in caregiver can be a valuable asset for residential care facilities, enabling them to offer continuous care and oversight to their residents. This, in turn, permits the facilities to charge higher fees, particularly among private-pay residents who appreciate the assurance of round-the-clock support and attention.
Pros and Cons of Being a Live-In Caregiver
Pros
Living onsite at a facility allows you to have constant oversight, giving you a detailed picture of all activities and operations. This approach allows you to have more control over budgets, effectively manage staff schedules, and provide high-quality care to all residents or clients. Furthermore, by lowering staffing costs and charging higher rates for your services, you can see a significant increase in profitability.
Cons
Living on-site necessitates constant availability, which can quickly lead to fatigue. The tendency to micromanage all aspects of business might unintentionally create a stressful and hostile environment for personnel and residents.
Final Thoughts
Living in your residential assisted living facility as an owner and caregiver is a viable option with multiple potential benefits. However, it is important to fully understand and follow all local and federal requirements. Also, be prepared for the high degree of dedication and commitment that this duty requires.
For more resources, visit Assisted Living Investing and download our Business Plan Checklist to ensure you have a comprehensive plan in place to help you launch your assisted living business. Additionally, apply to our Assisted Living Investing Mastermind program to learn more about building a business plan, finding the property, securing funding, obtaining a license, and scaling your business. If residential assisted living interests you, but you need to know where to start, we are here to guide you through the process from start to finish
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