Year-End Tips tips to increase rates
Reduce your stress
Sometimes owning and operating adult residential homes is confusing, especially as it relates to increasing income. Some owners of Adult Foster Care Homes lay awake at night panicked over the increased costs of what seems to be everything. It’s not just the increased labor costs but also increased grocery costs and utility expenses at the residential assisted living location. Here are some simple year-end tips for increasing income at your adult foster care group homes to reduce your stress in 2023.
- Many guardians and payees are aware of the 8.7% Cost of Living Adjustment (COLA) increase to SSI and SDA. Confirm they will make this change to increase the income at your adult foster care community. The new amount is $1027.50 versus $954.50. Spending money is added to this amount.
- Some residents require senior care. Their Social Security retirement benefit is sometimes higher than the SSI and SDA allowances. The 8.7% COLA increase also applies to this situation. Notify guardians or payees to increase the rent amount owed to your assisted living facility by 8.7% starting January 1.
- If a resident’s care needs have not been evaluated within the past year, or the time associated with providing care has changed, it is time for a re-assessment.
- Communicate increased care needs to the resident’s case manager for a rate redetermination.
- If the resident is private pay, communicate to their payee a rate increase based on the additional amount of time associated with the resident’s activities of daily living.
Sleep Better at Night
Running your AFC home can feel difficult at times, but it doesn’t have to. When you know you are charging enough for private pay or accepting the correct daily rate from the agencies that support your residents, you can pay your bills. You can also pay yourself and sleep better at night.
If you struggle with calculating the cost associated with the care needs of your residents, Care Provider Solutions can help. We provide adult foster care home business consulting. Our Facility Management training will help you determine the minimum cost to charge per resident based on your facility expenses. You deserve proper compensation for the care provided to the residents living in your facility. Our mentoring for adult foster care providers can also help you establish the resident cost of care based on their care needs.
Care Provider Solutions can help you succeed
Do you have questions? Are you feeling stuck as a licensed adult foster home provider? Would you like support to run your business better so you are less stressed out? As an adult foster care system specialist, Care Provider Solutions can help your organization succeed. Contact us to learn more.
