In this report, Seniors Advocate Isobel Mackenzie provides a second review into government’s funding of publicly subsidized for-profit and not-for-profit operated long-term care homes and has again found spending differences impacting care for residents, many cost increases exceeding inflation, a lack of clarity on many reported expenses and inequitable funding for capital assets. The report Billions More Reasons to Care is a follow up to a report released in early 2020 looking at the same issues.
The report examined five years of financial reports for over 90% of B.C.’s publicly subsidized contracted long-term care facilities and found that between 2017/18 and 2021/22:
- Direct care staffing costs increased 33%;
- Indirect care staffing costs increased 33%;
- Building costs increased 18%;
- Supplies and administrative costs increased 61%; and
- Profit increased 113%.
The report found patterns of spending were different in for-profit facilities compared to not-for-profit facilities including:
- Not-for-profit facilities spent 25% more on resident direct care and 27% more on indirect care than for-profit facilities;
- For-profit facilities spent 66% more per bed on building costs than not-for-profit facilities;
- For-profit facilities earned 7 times as much profit as not-for-profit facilities; and
- Not-for-profit facilities delivered 93,000 hours more of direct care than they were funded to deliver and for-profits delivered 500,000 hours less than they were funded to deliver in 2021/22.
The report includes four recommendations:
- Funding for care must be spent on care.
- Improve accuracy and transparency of monitoring and reporting for compliance with publicly funded care hours.
- Define profit.
- Make revenues and expenditures for publicly funded care homes available to the public.