The government gives non-profit nursing homes the freedom to increase their prices by up to 35%

The government gives non-profit nursing homes the freedom to increase their prices by up to 35%
The government gives non-profit nursing homes the freedom to increase their prices by up to 35%

The potion risks being bitter for some of the nursing home residents. A hoped-for antidote against the financial asphyxiation of establishments, more than two-thirds of which are in deficit, a decree, published Wednesday January 1, gives for the first time to public and associative establishments the freedom to increase their prices by up to 35% to their new residents. The average daily stay price – 65.50 euros to date – could thus peak at more than 85 euros. The fear of a surge in prices worries some specialists in old age policies.

The decree declines the “Aging well” law of April 8, 2024, which establishes the possibility of price modulation in non-commercial nursing homes, 70% of the bed stock in . Until this law, their prices were entirely governed by the departments, on the grounds that they finance the stay of poor residents, who benefit from Social Accommodation Assistance (ASH). For a long time, the departments have maintained low and identical rates in retirement homes authorized to grant ASH for all residents, whether or not eligible for this financial assistance.

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Since 2021, aware of the economic difficulties of nursing homes, some of the departments have granted an increase in prices for the wealthiest residents. The SOS Seniors Group was a pioneer in this area. Fifty-six nursing homes of this associative operator apply a “solidarity overpayment”which can reach up to an additional 10.70 euros per day for residents whose income is at least 3,000 euros per month. “Without this additional rent, our nursing homes would be in deficit”indicates Loïc Rumeau, its general director.

“Additional financial margin”

The “Aging Well” law establishes the differentiation of prices within non-commercial nursing homes. It preserves, for the departments, the power to set prices for ASH residents, but it gives establishments the freedom to raise their prices for other residents, without being dependent on the departments. With a very large amplitude.

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