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| Reinvestment In Care |
Both for-profits and not-for-profit long term care facilities are
funded by the government and they essentially receive the same amount
of money. But there is a difference. Not-for-profit operators that
generate a surplus re-invest these monies to enhance or increase the
level of service provided to residents. Additionally, not-for-profits
typically allocate additional resources to their operation to further
enhance the level of care and service provided. For-profits, on the
other hand, generate surpluses but they are allowed to keep them and
withdraw these funds as profit for investors. These profits take money
out of the long-term care system that is funded through taxpayer dollars.
Recent Canadian research reported that for-profit long-term care is
more expensive, increases administrative and regulatory costs, and
leads to pressure to lower standards.
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