The cost of long-term care services increased across all provider types in 2021 and increased more substantially in certain settings, according to Genworth's annual cost-of-care survey, released last week. Put it down to demand outpacing supply. "Even more than in prior years, the increased demand for labor and the current national labor shortage have made it more difficult to hire and retain long-term care professionals," Brian Haendiges, president and chief executive of Genworth U.S. Life Insurance, said in a statement. "Those challenges are coupled with the broader trend of growing wages and increases in the cost of doing business associated with regulatory, employee certification, and equipment costs, which have all been exacerbated by the pandemic." Haendiges noted that many care professionals are leaving the industry to pursue higher paying jobs or because of concerns about potential exposure to COVID-19 while on the job. "The costs of recruiting, retaining, and training new care professionals is likely to remain high as we approach 2023." Genworth said that while labor costs are likely to remain high, conversations with care providers indicate that higher costs associated with personal protective equipment and other pandemic protocols, such as testing, vaccination status tracking and quarantining, may subside as case numbers fall. It noted, however, that wide variability in care costs for markets across the U.S. likely will continue, owing to state and local regulations, demographics and population shifts.
The 2021 survey found that the cost of care services has increased as follows:
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