Who are the needy? Or the poor. However you want to phrase it.
That's been a big part of the debate regarding the viability and profitability of the Champaign County Nursing Home. The debate has been generally focused on Medicaid vs. private pay patients. Those on medicaid are thought to be poor and more in line with what should be the Nursing Home's mission as a public institution to help those in most need. Those private pay people can go anywhere and the public nursing home ought not be overloaded with such people.
The reality is much different. Clearly, a Medicaid resident should be classified as poor. A few accounting tricks over a lifetime might give you a life of relative affluence while having minimal assets, but this is certainly not the norm.
Private pay individuals are those people that have assets that allow them to afford care. But many of these people are truly poor, and will only be able to afford care for a limited amount of time. Here's an example.
Let's say you have income from Social Security of $1200 per month, you've saved $50,000 in IRAs and other retirement funds, and you've sold your home for a net gain of $100,000. Under this scenario, of $150,000 in assets and $1200 in fixed income, I believe that you're a private pay individual. I'll leave others with more knowledge to fill us in on just how far you have to "spend down" your assets, but I'm pretty sure it's well below $150,000.
So your income amounts to about $2,000 per month when you include return on your investment. Not too bad if you're in assisted living at $2500 per month. That will last you about 15 years. But if you're going into a nursing home at $4,000 a month, you'll be tapped out in four years.
Clearly that person who is private pay is far from being rich. Not destitute, but clearly a person that fits into the mission of the public Nursing Home to help the "needy".
My experience has been that within the admissions process, assets and income are both given by the prospective resident. I think this part of the population, those with assets, but undoubtedly on their way to Medicaid, should be included in the discussion on what our mix should be between private pay and Medicaid patients.