I am finding that more and more people are unaware of any real difference between For-Profit and Not-For-Profit Senior Retirement Continuing Care Communities. From the outside they pretty much look alike, they seem to offer similar services, and their residents seem generally satisfied with life in these communities.
So what is the difference between them? I would say the difference is great and I’ll be specific. Let me first say that many For-Profit organizations can and do offer fine services. But intrinsically, they are judged by their owners/shareholders on the earnings they produce. Their mission is to provide a return on investment and their product is services, programs and housing for seniors. Success is easily measured by the bottom-line of their financial reports. Cutting expenses is an important tool to meeting their mission. There is typically a stong focus on reducing expenses such as overhead, supplies, services, and staffing. Their residents can struggle to find comparable quality when in comparison with most not-for-profits, whose mission and purpose is something other than the ‘bottom-line!”
Not-For-Profits are judged by different standards. Most Not-For-Profits are charitable, church-related organizations. They were created not to return earnings to investors, but to meet their organizational missions. In our case, that mission is to “. . . serve the Lord by creating relationships, services and environments that enhance the well-being of seniors and their families.” Financial stewardship does have an important place in Not-For-Profit operations and wasting resources can not be tolerated. Any earnings at the end of the year though, are not given out to owners/shareholders, but rather those earnings stay within the organization to benefit the residents, allow for expanded services and outreach, and are utilized for charitable services.
When considering the differences in quality in nursing homes, here are some interesting facts for you to consider. [Based on “Quality of Care in Nursing Homes” – Medical Care; 2003; Volume 41, Number 12, pp 1318-1330] Residents of Not-For-Profit nursing homes receive 6% more hours of LPN nurse care; 10% more C.N.A. care; 37% more RN nurse care and 22% more care from additional licensed staff. Also, Not-For-Profit nursing homes have 42% LESS serious total deficiencies than For-Profit nursing homes.
The difference between Not-For-Profit and For-Profit Senior Communities is greater than you think! Bottom-line: It’s the mission!
