Are private homes for the elderly an affordable option for our growing ageing population in search of shelter and care?
The Consumer Council has published the results of a survey targeted at all 571 private elderly homes to investigate the levels of fees and charges and their pricing and refund practices.
A total of 185 or 32.4% responded of their own volition to the questionnaire survey.
According to the survey of this massive scale, vast variances in price and service could be found among these private homes for the aged. The wide-ranging choice is as tantalizing as it is baffling to the consumers.
The welcome news is that the market is such that no elderly on Comprehensive Social Security Assistance (CSSA), should find himself or herself deprived of the service of a private elderly home on financial grounds.
In fact, some homes openly advertised to lure senior citizens on CSSA offering what they claimed an all-inclusive service of accommodation, meals and care to be fully covered by the scheme.
In addition, a host of other factors also bear significantly on the pricing. First, and foremost, is the level of care required for an elderly person as assessed by a registered doctor, namely, high, middle or low level of care.
For instance, a single-bed accommodation with high level of care could range from $3,500 to $10,000, with middle level from $3,000 to $6,500 and low level from $2,000 to $6,000.
The range of choice is anything between the most expensive single bed with low level of care at $6,000, and the least expensive single bed but with high level of care at about half the price of $3,500.
The variances in room rates were also considerable: from $3,000 to $18,700 for a twin room, and $3,000 to $24,750 for a single room.
But consumers will do well to check what items they need to pay extra. In most cases, prices quoted cover basically rent, meals and care service; such services as physical therapy, social activities, entertainment, medical supplies and glooming products are usually charged separately.
Other factors affecting pricing include the economic status of the elderly and his or her family, and naturally the location, environment, size and type of the accommodation.
Besides pricing, an area of consumer dissatisfaction concerned the refund of deposit and unused portion of monthly fees in the event of prolonged hospitalization and death.
Again vast differences in practice were found among the elderly homes, with not a few declining any refund at all particularly in respect of unused monthly fees.
The survey showed that 60% of the homes responded that they would not refund the remaining part of the monthly fee on early termination of residence.
For hospitalization spanning over a month, 31.4% would not refund (though such miscellaneous items as diapers will be provided for use at the hospital), 51.9% would refund only the parts for meals and miscellaneous items.
In cases of sudden death, 50.8% simply provide no refund at all.
The Consumer Council is of the view that elderly homes should consider refunding at least the unused part for meals in cases of prolonged hospitalization or sudden death.
The situation differed in respect of refund of deposit - consumers should take note that not every elderly home requires a deposit payment as 15.7% of the homes replied that they need no deposit for admission.
77.8% of the homes responded that they would refund the deposit on termination of residence with sufficient notice.
72.4% and 43.8% would refund the deposit in cases of sudden death, and termination of residence during trial period respectively.
Nonetheless there were 7% who would keep the deposit and decline any refund.
The Council believes that any deposit should be returned within a reasonable period if no payment is outstanding.
Elderly homes are urged to adopt a high level of transparency in price and policy for information of consumers before admission. Consumers are strongly advised to consult the results of the price survey, and guidance on the choice of a private elderly home.
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