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Need monitoring framework to assure /convince relatives of workability and enhanced lifespan.

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So it sounds like you want to set up a board and care home with your three relatives as your only clients?

I would suggest starting by reading a business plan for those who do this to make money. Then adjust as needed for your situation.

Here is the first one I found.
http://thestartupgarage.com/wp-content/themes/pagelines-child/samples/vintage-home-and-residential-care-business-plan.pdf

It sounds like you have a dwelling already, but you would need to have caregivers and management. Would these be family volunteers or paid staff?

Have an exit plan so everyone knows when it isn’t working anymore and what comes next.
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A good friend of mine works for a family that set up a board + care home for their mentally disabled son. They have other paying residents. Please know that you will be running a business that has a lot of government regulations and ADA accessibility requirements. Rules probably differ from state to state. What state are they in? Go into it with eyes wide open regarding investment of time and money. In a good facility they would be having more of a variety of social exposure to people and activities. The one downside of being cloistered is that it eventually becomes a socially sterile environment unless their caregiver is very busy planning interactions and outings for all 3 of them.
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I know this will sound rude but as a retired Social Worker would u not know how to go about this or at least be aware of the Departments in your County/State that have this information.

You have one thing going, ur a SW. But, you will need to hire aides. Then u will be an employer. Maybe have an RN or Dr. on staff. Medicare/Medicaid approved? I know they thought about having the Visiting Nurses I worked for Medicare approved but there would have been a lot of criteria we would have to meet and then the State would be involved. Since the Township subsidized us, they didn't think it was a good idea. We were set up to help people who had no insurance.

This won't be an easy thing. There probably will at least be State forms. Then State inspections. County and Township inspections. CEOs. It won't happen overnight.
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Or does your post mean that a family is living all in the same place. And they want to keep the elderly home as long as possible? Office of Aging maybe able to help here. Ask that they evaluate the housing. They may recommend showers instead of tubs. Using shower chairs and handheld shower heads. Bars on the shower walls. Easy accessibility in and out of building, etc. If money a problem for residents, then maybe Medicaid in home.
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You've received some very good answers and insight to the underlying issues.    It's unclear to me whether this family or families, presumably a client(s) plans to hire caregivers, or perform the work themselves.   There's a big difference, especially in the legal and financial issues other posters have already addressed. 

Some other issues to address:

1. The dwelling:  owned  (by whom), leased from whom?    Homeowner's coverage, rentals, or some level of professional coverage might be required.    Costs would be factored into over all costs, including maintenance, upkeep, repair, etc., and divided among the 3 individuals' families.  I would include this in the bookkeeping category, so you could probably create an Excel spreadsheet for monitoring.  

2.   Management, ownership:   this could vary widely.    Is there going to a management company, shared by the 3 families' representatives, etc.?    If joint ownership and management is considered, you'd need an attorney's assistance to create the appropriate entities, file, and prepare taxes.

3.   Monitoring network:   how familiar are you with actual AL facilities?    I would think you'd need medical as well as nonmedical support staff.   How will they be managed and to whom would they report?

4.  Enhanced lifespan:   I think this may and could be a likely and hopeful outcome, but I have no idea what data you'd have to gather to make comparisons, and even if that data would be available.    I'd be leery of making this representation to the families involved though. 

5.   As to other monitoring efforts:  identify them specifically, and possibly create a decision tree as to responsibilities ranging from basic to executive.    This would probably be quite detailed, but important.

6.   Backups for all essential components, services and equipment should also be identified.  Locate and perhaps discuss terms of service in the event that major issues occur:  i.e., a blizzard or other drastic weather event cuts off power.    Will you have back-up generators and who will service them?   What about other potential weather events that compromise the residents?

7.   Activities:   how and who will you hire to plan and implement these plans, if any?    Vetting, monitoring and payment all factor in as well.

I'd be interested in learning more about your own plans at this point, and how involved you'll be with your clients in creating this arrangement.    I think it could be a very workable venture, with a lot of background work and contingencies worked out beforehand.
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