Why does elderly care cost so much?

The real question is why is this the way it is? Elder care is so hard. It’s so much work.

An apartment in Denver with no services, food, internet, tv, activities, entertainment, or utilities is about $2500 a month. Just the cost of heat/ac and gas/electric for the memory care AL I worked at for one month was in excess of $20k BEFORE inflation crushed the USA. Food since then has gone up at least 40%. You do the math.

Why does life in the USA cost so much, would be a better question.

It's actually a good question. Some resourceful entrepreneurs might be able to reduce these costs substantially and still provide excellent care.

My husband complained about them charging $300 a month to manage my father's medications. I thought that was a bargain. $10 a day and they organized and made sure he took them. I did think $4500 a month was a bit steep for the rent of a studio apt there. I never had an issue with the cost of additional services though.

Well, like most other things in the USA it is follow the money. It's about businesses and profits; about supply and need.
When you think on it, the cost of a single room in ALF at 5,000 a month covers a LOT in a good facility: food, activities, cleaning, laundry, beautiful grounds, staff, assistance, transportation and etc.
In a poorly run facility, however, it's no bargain. So it is a matter of finding a good facility, something my brother was lucky enough to do.

Then you have the fact that these facilities are often run by huge companies, owning many facilities with huge staff, both local staffs and out of state. I think one would actually have to work in the industry to make any judgements on your question, but when you see that now Hospice models are much changed from when they were real vocations and missions, and when you note this happened when they began to be bought up by hedge funds? Well, it is a matter of following the money.

My brother is gone now for some three years. His ALF was wonderful and worth every penny. I follow it because his ex partner and friend still lived there until his recent death, and this ALF in Southern California is STILL wonderful.
As a nurse I became acquainted with and aware of a few family-run Board and Cares in my area back in the day. And all I can say is I don't know how they did it for the cost--a tough job.

So there are many factors here, and your question would be a great one for "Discussions" on AC.

You might well ask why ANY care is so expensive.
or
Why is anything / everything so expensive.
Who ever thought we would pay $6.00 for a dozen eggs....and that is after the price has sort of come down.
Are you sick of the term "supply chain shortage" yet?

Add to all the reasons below this..the strides being made in developing new drugs, new treatments has been phenomenal. But with that comes cost. Keeping people alive for far longer than ever thought possible. This might be good...it might not be so good. Let us all keep QUALITY of life balanced with QUANTITY of life. (good time to talk to your family about what your wishes are and to make sure that you have filled out papers indicting that you want no "extraordinary" measures taken.)

All the answers below plus the fact that just being in business is expensive, especially if you have employees. Employees are the majority of the overhead expenses of almost any business: quarterly withholding taxes, benefits, the admin person and time required to manage just the HR part, regulatory compliance for the industry, etc. Facilities have to pay for business essentials like communications (internet, website, phones), printed materials like brochures and stationary, postage, lines of credit/banking fees, etc. There are so many little expenses that add up, it's like death by a thousand paper cuts.

The cost also varies by location, by how "fancy" the facility is and the amenities it offers, and by the ratio of staff to resident. Right now there is a labor shortage (even for unskilled labor) which is driving up costs.

Great answers below, but here are few more: property taxes, insurances, and facility maintenance are through the roof.

Rent for a one bedroom flat is $400 per week in my city on average. Housesharing maybe $200 per week plus bills. Add cleaning, cooking, medications, companionship/supervisoon, 24/7.. I can't do the math this late at night.. nor could I run my own Nursing Home.

I volunteeted once for a week in a NH. It takes a LOT of people to run these places. Cooks, cleaners, carers, one RN oer shift, a Manager. I had food thrown at me, yelled at, was nearly biten, saw more wee & poo than I ever want to, yet also saw staff who really cared, family who cared.

Love. Money. It all makes the world go round.

I too would like to know why it costs $9000 (or more) a month for a shared room in a SNF.

Why? Mainly because the elderly require SO MUCH care. They need 24/7 supervision. They need other people take care of their physical needs, their health needs, their financial needs, their emotional needs, their housing needs, their end of life needs, their final arrangements, their wills/probates/estates, their everything. That means they need caregivers, nurses, doctors, administrators, lawyers. Nobody wants to work for free, do they?Do we?

Then, you add in the costs of medicines, medical supplies, testing, ERs, surgeries, food, housing, and transportation. I’m sure there are more costs that I haven’t thought of.None of the above comes cheap.

It's not because the people doing all the hands on work are getting rich, that's for sure.

Getting old is expensive! Nothing is moderately priced anymore. At least, I can’t think of anything.

It would certainly be nice if the cost of living wasn’t so high in our world today.

It’s a shame that the caregivers who work so hard caring for the elderly aren’t getting paid enough. They are struggling too. The only people making lots of money are the business owners.

There are tons of opportunities for people who are interested investing in assisted living facilities. Sadly, not everyone can afford it.

If you do not have sufficient income then you will have to apply for Medicaid.

I wish you all the best in finding the support that you need to find suitable elder care.

What if all child care, elder care, education & all special need services were all totally free...
All health care, medications, treatment, surgery, all free.
All housing, power, heating, cooling free. Food free too.

Seriously, it is hard.

Hard to get all the care you need for a loved one - with loads of money, some money or nothing much at all.

Do the best you can with the resources you have.

If your Dad needs 24/7 care he needs to pay for Aides or go into care. If he has Money he can go into an Assisted living. Yes its expensive but he gets a private room. 3 meals a day. Laundry and cleaning done for him. Aides to care for him. Activities and outings. Transportation to appts and shopping.

If Dad has no money, then Medicaid. Either for homecare or a facility.

This can’t be a serious question.

If you’ve ever done elder care, you should know.