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Assisted living looks for an assist

Coronavirus Daily
Bloomberg

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Assisted living looks for an assist

Nursing homes have become the focal point of America's coronavirus crisis, with more than one-third of the nation's deaths occurring among residents. The outsized attention has another industry that cares for some of the most vulnerable people feeling left out.

Assisted living facilities have been excluded from federal relief aimed at nursing homes and other providers. These communities are meant for socializing among seniors who might need some help but can largely function on their own, unlike nursing homes, which provide round-the-clock care.

It's not clear exactly how the industry as a whole is faring since they are not beholden to any federal reporting requirements. Examining state data suggests they are facing fewer cases and deaths than nursing homes.

But operators are clamoring for Washington's help accessing personal protective equipment and coronavirus tests and covering the costs they are incurring from protecting their residents and employees. Brookdale Senior Living, the largest such operator with 741 communities, expects to spend $60 million on virus-related expenses by the end of the month.

While assisted living operators are shelling out money to keep existing residents safe, they're losing residents—and revenue—while they are largely, if not entirely, closed to newcomers. One executive calls the slip in occupancy "the real killer" for the company's financial situation.

Residents primarily pay out of pocket, and it's not cheap. The median monthly cost is $4,000, according to the National Center for Assisted Living. Facilities that accept Medicaid are slated to soon receive their first bite of federal funds allocated for provider relief in the CARES Act. That means under half of all assisted living facilities are likely eligible.

Industry groups and operators say it's a start but it's not enough.—Angelica LaVito

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