How to Compare Profit & Non-Profit Nursing Homes

Planning the care for your spouse or parent who requires a nursing home stay can be overwhelming and stressful. Nursing home placement is not necessarily permanent, and you always retain the right to move to the location of your choice. However, noting the differences between for-profit and not-for-profit nursing homes can help you make your decision.

Benefits and Negatives of Profit-Based Homes

• Profit-based nursing homes are either privately owned or publicly traded and can vary drastically within this category. However, because the facility is geared towards making profit, they will likely charge for some nominal items, such as daily care products like deodorant. But with the increased profit that they generate, these facilities are often able to provide large cost items for residents as needed, such as a customized wheelchair that can easily cost $10,000.

Benefits and Negatives of Non-Profit Homes

• Non-profit homes can have many financial limitations if they are not run to optimize income, which can limit the accessibility of the residents to needed specialized items. However, all profit that the home makes must be spent within the year towards the needs of residents, which may encourage the home to spend money on large capital expenses, such as major renovations and increased staffing.

Research the Home

• Although there are some general differences between non-profit and profit nursing homes, the guidelines for billing Medicare and other insurances are the same for both, and this income comprises the large majority of the home's profits. The most important thing is to personally visit the home and ask others in your community about their experiences with that home to guide you in your decision.