Cost of Adult Day Care In Metropolitan NY Region
Today information is both free and ubiquitous. I was curious about the cost of Adult Day Care in the various states in the New York Metropolitan Region. Big shout out to Genworth Financial and Care Scout for doing the heavy lifting in terms of figuring out the cost of adult day care in Metropolitan NY region. I was curious because we see huge differences in both the services provided and the insurances needed to properly run an Adult Day Care business.
Take New Jersey for example. New Jersey’s Adult Day programs tend to be pretty sophisticated facilities in terms of the level of care and medical services provided. They tend to be staffed with more registered nurses than are certain Adult Day businesses in New York which are operated more as social clubs.
Where your Adult Day Care business is located is probably one of the largest determinants of cost. Primarily because their costs rise and fall contingent on their location. Both Labor and Real Estate costs are significantly higher the closer you get to New York City; Long Island and Northern New Jersey is no bargain either.
It’s not just the real estate and labor that drives costs. Workers compensation insurance for adult day care business are much higher in downstate NY than they are in upstate NY. It’s not just the rates but the ultimate compensation employees are paid down state result in higher workers compensation costs due to the increased payroll. Further when they suffer employee injuries the surcharges on the workers compensation premiums as applied by the experience modification factor for Adult Day Care increase exponentially. I am sure the reimbursements from the state don’t come close to reconciling this imbalance.
This is why it’s imperative that Adult Day Care operators remain vigilant when it comes to their unit cost structure when delivering their service. Insurance costs for Adult Day Care business’s should be an area of focus. Especially as worker compensation insurance for Adult Day Care business’s and commercial auto insurance if they are providing transportation.
We suggest partnering with an insurance broker that has resources to assist your growing Adult Day Care business so your education doesn’t become expensive. Not sure where to turn? We suggest you speak to a Risk Advisor.