CONS -Most importantly the family knows the most about what the resident likes and needs. The agency personnel have never even met the residents.
“It’s hard to find the right fit without really getting to know the resident and what matters to them.”
PRO- How can an assisted living placement agency help?
Looking for assisted living can feel like a lot to take on. A good placement agency can help you narrow down your options. Advisors who know the local communities can offer insight into available rooms, and the care various places provide.
CON- Hidden high referral fees and assisted living costs.
Many placement agencies have high referral fees. The commission paid to the agency, or person or broker is in proportion to the first month’s rent. This community may pay the agency for a referral fee of $8,000. You as a family member or resident will not be immediately charged, but all fees end up being paid by the residents at some point and time. It can affect whether the facility elects to accept the new resident, considering the high commission or fee.
CON-Could an agency point me toward a more expensive community?
That is a concern when referral payment is tied to the first month’s rent, a higher rent could mean a larger payment to the agency or broker. These are not small numbers, the difference between a $5,000/month facility and a $10,000/month can mean a significant amount of money for the agency.
But this does not prove the agency favors the most expensive option, and payment arrangements can vary. The key issue is whether the recommendation fits the residents’ needs, rather than the agency’s potential earnings.
CON-Can there be a conflict of interest?
Yes, there can be a potential conflict between what is best for the residents and an agency’s business relationship with an assisted living community. Many placement agency personnel have a long history and relationship with their favorite assisted livings. Sometimes, differences with a community’s management may mean a good option gets left off the list. The potential is their family members should be diligent in asking questions like, “Have I seen or have you listed all the assisted living in the immediate areas.” That does not automatically mean a recommendation is wrong. It does mean the residents’ preferences, care needs, and budget should remain at the center of the conversation.
A placement agency can be a helpful resource, but its recommendations are only one part of the decision. Ask how the agency is paid, which communities it considers, and why each option is recommended. Above all, keep your loved one involved whenever possible—the right fit should reflect what matters most to them.
