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Assisted Living Facilities (ALFs), which provide a community for residents who require assistance throughout their day, is an important part of the long-term care system in the US. The costs of ALFs are paid either out of pocket, by Medicaid or by Long-Term Care Insurance (LTCI). Monthly costs of ALFs have increased over the past five years on an average of 4.1%. The purpose of this research was to examine the future trends in ALFs in the US to determine the impact healthcare on costs. The methodology for this study was a literature review and a total of 32 sources were referenced. Trends in monthly costs of ALF’s have increased from 2004 to 2014. Within the past five years there has been an increase on average of 4.1% in assisted living costs. Medicaid is one payer for residents of ALF’s while another alternative is the use of LTCI. Unfortunately, Medicare does not pay for ALF’s. Staffing concerns in ALF’s are limited due to each state having different rules and regulations. Turnover and retention rates of nurses in ALF’s are suggested to be high while vacancy rate for nurses is suggested to be lower. The baby boomer generation can be one contribution to the increase in costs. Over the years there has been an increase in Alzheimer’s disease which has had also an effect on cost in ALF’s.


This is the authors’ peer-reviewed manuscript, published in final form at Copyright © 2016 Wolters Kluwer Health, Inc. All rights reserved.