Why are U.S. nursing homes so expensive?

One invisible factor to driving up the costs: "Placement Agents" ...who say they "provide a free service" but are actually just charging the facilities, homes, and care providers, sometimes on average 100%-120% of one months care cost. Sure, they don't actuallty send YOU the bill, it goes to the care-home or community, but if you think it doesn't get factored into the cost of care you are wrong. One month's fees can range anywhere from $3,500-$10,000 depending on the facility and services. This is typically collected for about 3-4 hours of work done on the part of the "placement Agent".
What do placement agents do?
The optomistic view: They are a knowledgeable referal service that finds and keeps a record of good care homes for elder people who would not have been able to find them otherwise.
The critical view: They are middle men, who intercept a client who needs eldercare, tell them about some carehomes in the area (easily searchable on google or the State Long Term care Agency Website) and then drive up the cost of that care by billing the carehome who accepts the elder client between $3,500-$10,000, sometimes without ever meeting the client, the carehome, or anyone directly involved in the care interaction. Some are just web based "lead generators", others are more local, small business operators, but all engage in the practice of billing outrageous amounts of money for a few hours of work at best.

Warren, NHs in MD are running about $8000. Even the State Veterans home charges around $5000. A bit less but still outrageously high. I have a feeling that the two big Funeral Home conglomerates also have a big stake in the NH business also. What the hell happened to good old mental institutions, that's where our wives & husbands moms & dads went when they started the looney bin antics. Would love to see that make a come back but not like the MIs of yesteryear but new bright clean housing. Now I will rant, way off subject but if I had a child born with a major defect the state and federal governments would bend over backwards to give the free helping hand. You would think they would do the same for our elderly with brain disorders

Warren, I know that you have been concerned about the costs of long term care. I don't know if relocating is an option for you and your wife, but Memory Care costs are quite reasonable in the state of NC. I see many residents from up north who come in and live in AL.

In NC most of the places out of pocket costs, that I have seen are under $4000.00 per month. It's quite a bit less expensive than Nursing Home costs. I found that if the assessment by the doctor or facility staff qualify the patient for Memory Care, which is considered Assisted Living in NC, the patient will stay there for the rest of their life, as long as they don't require skilled nursing care. The Memory Care takes care of those who are fully incontinent, wheelchair bound, hand feeding only, bed bound, non-verbal, etc. That is their permanent home. I have been impressed with all of the those that I toured. It might be worth checking into it.

The figures that I found for Nursing Home care with private room are lower than $10,000. per month. I looked at several places that listed it around $7000.,but, whether it's $7000 or $10,000., it's still expensive.

However, I can understand why it cost so much. There are so many expenses that are required with a nursing home, including, staff (trained professionals), training, rent, utility, INSURANCE, equipment, food, etc. I considered opening an Assisted Living Home at one time, but, I don't know how you can make money at it. I suppose some do.

Warren, long term care home rates in Ontario Canada are currently $2,535.23 for a private room, but just as in the UK the remainder of the true cost is paid by the government.

Warren, another thing that could make nursing homes cheaper in other countries is that their government helps fund the homes.... but to do that the "income tax" in other countries is extremely high.

Warren, have you ever checked out salaries of Fortune 100 and 500 companies?

Nursing home costs affect us as caregivers, so of course we're concerned. But there are other industries where "millions" are paid to CEOs, or in the investment industry to high performing individuals.

Taking care of older people who need assistance is probably going to be a growth industry for quite some time.

This question was asked several months ago; there were a lot of good answers. You might want to search here or google it (posts here are linked to and reflected in google hits) and see a fairly thorough discussion of the issues.

Except for the liability insurance all those cost are similar or more elsewhere. I'd love to see a balance sheet from a NH. Probably millions in profit for the owners and bonuses for the top management.

I wouldn't be surprised that everything in our health system cost more here in the States is due to massive cost of malpractice and liability insurance.

Then the cost of labor, health insurance for the labor, workman's comp insurance. Cost of overhead such as utilities for such large buildings are very high. Property taxes. Sub-contractor cost for cleaning, cooking, rehab. Cost of equipment, beds, lifts, etc. Cost of exterior maintenance, lawn care, plowing costs.