Care Home vs. Assisted Living: Key Differences Explained
Sep 09, 2024
This blog will unravel the complexity of the assisted living industry, providing clear and concise information for both newbies and seasoned experts. Today, we'll look at a topic that many people find difficult to understand: the difference between a care home and a residential assisted living facility. This disparity goes beyond terminology to include substantial distinctions in services, legislation, and business strategies. Understanding these distinctions allows you to make more informed judgments about investing in the sector or launching your own assisted living business.
Care homes and residential assisted living facilities, while sharing the primary purpose of providing support and care to those who require assistance with everyday activities, operate within distinct frameworks. Care homes often provide a more intimate, home-like setting, with fewer residents and a higher caregiver-to-resident ratio. In contrast, residential assisted living facilities typically serve a bigger population and offer a broader range of medical and personal care services. These variances have an impact on everything from initial investment and ongoing expenditures to the quality of care given and regulatory requirements. We hope that by exploring these characteristics, you will be better equipped to navigate the assisted care terrain.
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What is a Care Home?
A care home, sometimes known as a "care home for the elderly," is typically a smaller, more intimate setting designed to give individualized care. These homes typically house four to six people, depending on state requirements. The smaller scale allows for more personal interaction and care, making it an enticing choice for people who prefer a family-like setting.
Care homes are often placed in converted residential homes, which provide a warm, intimate environment. These homes frequently have a live-in caregiver, with staff-to-resident ratios of 1 to 4 or 1 to 6. The services are geared toward providing tailored support with activities of daily living (ADLs) such as dressing, toileting, and meal preparation.
What is a Residential Assisted Living Facility?
A residential assisted living facility, shortened as RAL, RALF, Residential ALF, or similar acronyms, is meant to house more residents than a care home while remaining smaller than big commercial facilities. These facilities typically house 16 to 20 people and are frequently converted residential homes located in neighborhoods.
Residential assisted living facilities require more personnel than care homes, with ratios ranging anywhere from 1 to 8, 1 to 10, 1 to 15, or greater, depending on state criteria. The services provided are comparable to those in nursing homes, but because of the greater personnel and resources, they may include extra activities and services. These facilities frequently have the ability to bring in additional staff for activities and specialized services such as nursing care.
Detailed Comparison
Size and Setting
The main difference between care homes and residential assisted living facilities is size and setting. Care homes are often smaller and more intimate, resembling family homes. Residential assisted living facilities, on the other hand, are typically larger but seek to give residents with a comfortable and friendly environment.
Staffing
The staffing needs of care homes and residential assisted living institutions vary greatly. Care facilities typically have fewer staff members, allowing for a more individualized level of care for each resident. Residential assisted living facilities, on the other hand, must have a larger staff in order to meet regulatory standards and provide care for a higher number of people.
Services Offered
Both care homes and residential assisted living facilities help people with activities of daily living (ADLs) like washing, dressing, and managing their medications. However, there are distinctions in magnitude and other services provided by the two. Care homes often offer highly customized care in a smaller, home-like setting, which may appeal to folks who want a more intimate atmosphere. Residential assisted living facilities, on the other hand, maybe larger in scale and can hire additional personnel to arrange activities and provide specialized services such as nursing care, allowing residents to enjoy a broader choice of amenities and social possibilities.
Regulations
State health authorities can regulate both residential assisted living institutions and care homes, but the standards and requirements for each are different. Residential assisted living facilities, for example, are frequently compelled to install sprinkler systems if their bed count exceeds a specific threshold. This additional requirement increases the cost and difficulty of starting up these facilities.
Quick Tip on Licensing and Costs
When contemplating the prospect of opening a residential assisted living facility, it's crucial to take into account the initial expenses involved. For instance, it's important to factor in the installation costs of sprinkler systems, especially if mandated by state regulations. Assessing your budget and considering the number of residents you intend to provide for can assist you in determining whether investing in a care home or a residential assisted living facility would be the most prudent choice.
Making Your Decision
When deciding between a care home and a residential assisted living facility, there are a few important factors to consider that can have a big impact on your residents' well-being and satisfaction:
- Level of Care Required:
It is crucial to thoroughly analyze the specific needs of those who will be housed in the facility. Residents with more complex care needs may benefit from the additional resources and specialized care alternatives offered in a bigger residential assisted living facility. Those who would thrive in a more intimate, home-like situation, on the other hand, may benefit from care home support.
- Atmosphere:
The surroundings and atmosphere within the facility significantly impact the residents' quality of life. Care homes offer a more intimate, family-like setting in which residents can build strong ties with a smaller group of people. In contrast, a bigger residential assisted living facility may provide a more diverse social atmosphere as well as a broader selection of amenities and activities.
- Budget:
Financial concerns are also important when making this option. Care homes may have reduced beginning expenditures, making them an appealing choice for those with limited finances. However, it is worth noting that care homes typically earn less money than larger institutions, which might have an influence on the operation's long-term financial viability.
By carefully considering these factors, you can make an informed decision that best meets your target residents' needs, your budget, and your facility's mission.
Final Thoughts
Understanding the differences between care homes and residential assisted living facilities is essential for making sound judgments in the assisted living business. Each alternative has various benefits and downsides, and the best choice is determined by factors such as your specific goals, financial constraints, and the needs of the individuals in your care.
To further support your journey, visit Assisted Living Investing for free resources and subscribe to our newsletter. Check out our Business Plan Checklist, which is designed to help you create a comprehensive plan for your new facility.
Need help figuring out where to start? Join the next Roadmap Challenge and build your launch plan with me.
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Transcript
00:00:00
hey friend it's Brandon Gustafson welcome back to Assisted Living investing I excited to have you on the channel today we are going to be getting into what is the difference between a care home and a residential assisted living facility if you're interested in learning about that make sure you stick around for today's [Music] video hey friend it's Brandon Guston with Assisted Living investing I own and operate two assisted living facilities and I created this channel to help people like you learn the ins outs of
00:00:31
investing in assisted living welcome to Assisted Living investing before we get into the topic of today's video I want to remind you to get down to the website Assisted Living investing. netal we'll link it down below where you can get access to our free underwriting calculator to help you on your investment Journey now let's get into the topic for today's video we're going to be talking about the difference between a care home and a residential assisted living facility I see a lot of
00:00:57
people use these things interchangeably and they kind of talk about them and they're just kind of trying to figure out especially as you're new to the industry and trying to figure out which one is best for you so we're going to talk about that first let's kind of Define it let's level set what is a care home so a care home or you might hear it as like a care home for the elderly a CH or something along those lines is typically going to be something that is smaller uh they're going to be like four
00:01:24
to six residents depends on your state and what the licensing looks like for them but they're it's going to be smaller more intimate you're going to be able to have more personable care um as you work through that with your residents and and things like that it's it's just a smaller intimate setting that you can work with your residents on so it's it's a really cool option a residential assisted living or an Ral an RF an rcfe um you there's a lot of different types of acronyms that are out
00:01:55
there for that they all kind of fall under this umbrella of a residential assisted living facility typically this is going to be more residence than your care home is going to have it's going to be smaller than a big box kind of commercial type of a facility though um and but the cares that you're providing at both of these are are going to be similar you're providing cares activities of daily living ADLs uh where you go in and you you know make beds or get people dressed or um help them with
00:02:23
toileting or get them food and prepare their food or whatever it is you're going to do the same thing at both of these facilities just kind of the scale of of what they look like and some of the different requirements so we're going to really dive deep now into kind of a comparison uh of a group home or a care home and a residential assisted living facility so let's dive into that right now number one is going to be the size and the setting so the size of a care home is going to be limited based
00:02:52
off of the residence that you can have in your state I've seen four to six it just kind of depends on the state and what their regulations are I've not seen anybody else get above six so if you are aware of a state that lets you have a care home larger than six comment that down below i' love to hear about it um and see what that looks like uh and it's going to just be a little bit more you know intimate and in the way that you work on it it is definitely a residential home that has been converted
00:03:20
and and you're working you're you're interacting with your residents a residential assisted living facility on the other hand is going to be bigger I've seen 16 to 20 beds um as kind of the cap for for this type of a facility typically because it is a residential Assisted Living it's going to be also in a residential home that has been converted into an assisted living facility it's going to be in a neighborhood it's going to look somewhat similar to that although you might see
00:03:46
some larger type big box facilities that look more like a commercial type of a building that have smaller resident counts you know around that 16 to 20 bed mark that kind of qualify for this type of license so you kind of want to be careful but typically what you're going to see here as as you're working through the process of getting your license it's going to depend a lot on the size and the setting of your facility here and what you're seeing with your residents all right let's talk about Staffing so
00:04:16
in a care home what you're going to see from a staffing perspective is it's it's again much more intimate because you're going to have less staff and so you get to know your residents more and typically you're going to have a living caregiver you as the owner could be the living caregiver here at the at the care home and it's just going to be less just because you have less residents and so your ratio could be 1: 4 or 1 to six you need to make sure you still have the proper coverage at your assisted living
00:04:41
facility but it it's just going to be a little bit more intimate in the way that you do that whereas it a the Staffing at a residential assisted living facility you're going to have to have more staff um you're going to have to meet the requirements of being that level of care um and depending on your state that could be 1 to8 or 1 to 10 residents somewhere along those lines um so you want to just kind of be aware of what that's going to look like U for the way that you are Staffing you're still
00:05:05
providing a lot of the same care um but in that residential assisted living facility you might have a few other people that are involved in the process you know act planning activities um helping out with nursing those types of things you might have to involve some of those other pieces of staff to help you along uh in in running your facility now let's talk about the services that are offered and really at its core both of these are offering the same types of services assistance with activities of
00:05:34
daily living or the ADLs so your care home is doing that your assisted living facility is also doing that the difference where it kind of changes is at a care home it is much more personalized and individualized care you know these residents you know everything that that is going on you're with them all the time and you're able to help them through the process it's just much more intimate whereas at a residential assisted living facility it's still small but you've got more staff and
00:06:00
there's you know more turnover with your staff and and shifts changing and residents are probably changing out a little bit more and things like that um and so there's just it's not as personable and uh it's just it feels you know it still feels nice but uh probably not as comfortable for your residents but something you're able to do at these larger facilities probably bring in um some extra staff to help out with activities and create something that's a little more engaging for the residents
00:06:28
and bringing outside outside Services um to help out and and kind of coordinating with a nurse to come in and provide a higher level of care where it's needed and those types of things uh whereas at a care home it might be difficult to do that or you might be hesitant to do it because um you just don't have it's the margins are a little bit Slimmer because you have less residence in the facility that's going to be the difference kind of between the different services that are offered at those facilities and and
00:06:54
how it kind of impacts your residence from that standpoint the last one is going to be regulation um so there's different rules and regulations they are both going to be governed by the same um body in your state the health department or whatever it's going to be in your state um so that doesn't change but the the different level of license that you're getting is going to be impacted and what I've seen there's kind of like this this line that is in the sand here um on one side it's you know four to six
00:07:21
beds somewhere in that range that's smaller and you don't have to have a have a sprinkling system in in your house whereas if you're getting above that you're gonna have to have a sprinkler system and then you're limited up to like 16 to 20 depending on um the how your state runs things um so you kind of want to be aware of what you're looking at there um once you get above that then you're looking at more of a commercial type of a facility so uh it's also something you want to keep in mind
00:07:48
as you're going through that process but um really that line for me that I've seen in in a lot of PE places and I having conversations with a lot of people is that uh that line is the amount of beds and sprinkler system and and that kind of dictates where you want to go so now what I've also found here and this is just kind of quick tip here um if you are looking at doing a residential assisted living facility but it's smaller but you you still want to do it because you could get eight beds
00:08:16
but you're going to have to qualify or you know get licensed for that residential assisted living facility rather than the care home um and what that's going to do is cause you to have to put in the sprinkler system and that's a large expense um you know 40 to 60 $80,000 um so you need to look at that that Line in the Sand and say to yourself okay I could get eight residents in here and that's going to be great or I could have six and not have that big upfront um expense and so which
00:08:44
of those is going to be better for me and which one's going to help me reach my investment goals and if you get over to Assisted Living investing. net BPG we'll link that down below uh I have a course that's called the business planning guide that's going to kind of give you an overview of what it cost me me to run my facility um and also underwrite things to make sure you're comfortable with what you're looking at from an investment perspective so that you could kind of make that decision six
00:09:10
six beds at a care home versus eight beds at a residential assisted living facility uh which one's going to work best for you if you're in a high-end private pay facility eight beds might be fine it's probably not going to be a big deal but if you're smaller um or you're in a an a state where you just can't command those High rates for private pay or you have to lean on Medicaid or something along those lines then doing this this route where you're at 8 to 10 beds it might not make sense you might
00:09:35
want to just stick with that smaller Care Home type of a facility um you might have better margins there so just kind of a quick tip as as you're going through that I'd love to hear what which of these options are you most interested in um just comment down below um care home um or uh raw R um for which one is most interesting to you I'd love to just kind of see where people are at and which one you're leaning towards and which one you need the most help with um and kind of help you through that
00:10:04
investment Journey um because as as I've kind of gone through this what I found is there's a few key points in helping you determine which of those you should be going with the first one is going to be um the level of care that is required for your residents um you want to be looking at you know do they need a lot of care you might be needing to the the type of Resident you want to be serving do they need a lot of care you might want to be going to that residential assist living um type route because you
00:10:32
might be able to access some of the extra things that those residents are going to need and turn it into memory care or something along those lines whereas if you're wanting to stick with somebody that is is mobile and independent and just needs a little bit of help really both of those um options are going to be great for you but maybe you want to go with a care home um the next criteria that I think you should probably consider as you're going through this is the atmosphere that best suits the resident what type of
00:10:57
atmosphere do you want to put in front of your residents and what do you want them to feel like when they are at your home do you want them to feel like it's like a true home and their family care home is probably the best way for you to go about that or are you not as interested in that or you want to provide them with some of these extra amenities and things like that you just can't do in a smaller home uh just because there's lack of space then going the residential assisted living facility
00:11:20
route is probably the best um route for you to go so that's something for you to consider and the third piece that I would tell you to consider is just your budget um I talked about this a little bit previously get um over to the business planning guide and download and and you can purchase those resources that's going to help you decide you know which type of facility you should be going with and and help you get the funding that you need to to start that process but um you know is is is it
00:11:46
something where you you're okay having this smaller facility and and just kind of looking at um at what that looks like I've actually done a video and we'll link this up above where I talked about having a profitable two to three care home um two to three bed care home and can you be profitable with it so make sure you go and watch that it's going to give you a lot more information and get detailed into that it's going to help you out through the process there but you know is is that the type of thing
00:12:12
that you have the budget for or do you have more of a budget and you want to generate more cash flow and generate more income and going the residential Assisted Living route is more beneficial for you so uh I'd love to hear which way are you leaning make sure you comment that down below uh if you have not already like this video and hit subscribe and ring the bell we are going live on the channel uh once a week we're putting out this other content every week as well and get over to the Facebook group as well uh Assisted
00:12:40
Living investing we have a lot of great conversations over there people like you kind of on their investment journey and if you haven't already get over to the website Assisted Living investing. netal where you can get access to our free underwriting calculator to help you out on your investment Journey we will link that down below in the video description just residential Assisted Living sound interesting to you but you just don't know where to get started at Assisted Living investing we are here to help you
00:13:04
through the process start to finish thanks for watching and have a great [Music] day
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