Generally, however, the trend is toward de-emphasizing institutionalization and promoting private care or assistance. Assisted Living - How Does It Work Inspired by the Dutch and Scandinavian systems, assisted living programs originally offered housing and sheltered services for the frail elderly. Today, the industry provides long-term care in a homelike environment at less expensive rates than nursing homes. Elderly residents gain an ability to live a more autonomous lifestyle, while enjoying the comfort and security of on-site services, including health programs and other types of support. As residents age, their level of need increases, and the community becomes responsible for providing more complex levels of care.
Residents are able to customize their level of care based upon their needs.
A Merrill Lynch industry report indicates that the average assisted living community comprises 58 separate private living units. Some 30 to 40 percent of residents suffer from Alzheimer's or some other form of dementia. Due to the focus on lower acuity care, assisted living communities can offer the elderly the level of care that is individually required at prices that are typically two-thirds of what a nursing home would charge. Most assisted living communities in the United States offer a tiered pricing schedule in which residents pay a basic rate for room and board, and are then charged additional fees depending on the level of service they select. This economic structure is beneficial for both the provider and the customer.