Re: Seattle Times Article entitled “Seniors For Sale” by Michael J. Berens
In the January 31, 2010 Seattle Times article by Michael J. Berens entitled “Seniors for Sale”:
Mr. Berens appears to equate the sale of an adult family home businesses to the sale of human chattel. How is the sale of an adult family home business any different from the sale of a nursing home, an assisted living facility or for that matter an apartment building? Of course in the case of any of these different businesses there are residents/tenants. Those tenants/residents pay money in exchange for housing and services rendered. Providing senior care is a business for assisted living facilities, nursing facilities as well as adult family homes. How is this business any different for an adult family home? Is Mr. Berens suggesting that adult family homes should not be able to be sold or that somehow the sale of an adult family home business is unethical or immoral?
Real Estate agents also have a few “bad apples”. We are guilty as charged – as with any industry. That does not mean to say that all agents who work in the sale of adult family homes businesses are bad agents however. Some are, most are not. Most are very conscientious about representation of business and making it clear that you may not in any way “sell” residents. Any agent making the representation that residents somehow come with the business is not behaving correctly.
Whenever any business is sold, one of the primary measures of value is monthly cash flow. This is true of assisted living facilities, nursing homes, apartments as well as adult family homes. The monthly payments of residents or tenants to the owners of any of these properties are what comprise that cash flow. The relative number of residents and their required level of care in the case of any senior care facility is always contemplated. The required level of care for residents directly defines the necessary number of caregivers and the requisite credentials and qualifications of those caregivers. Because the payroll expense of caregivers is usually the largest expense in any health care facility this is an obvious area that is closely evaluated in the purchase of an adult family home as it is in any senior-case facility. From a business perspective this also defines the relative profitability of any senior care facility; nursing home, assisted living facility and adult family home.
When an adult family home business is sold, the buyer must apply for a license and pass all of the regulatory requirements of the Washington State Department of Social and Health Services (DSHS). If the applicant is approved by DSHS, he/she is required to provide written notice to the existing residents or the resident’s families (in the event the residents are mentally disabled). If the AFH business is sold, and there is a new licensee, the residents may choose not to stay in the adult family home. That is their choice and their right. So how is this in any way unethical or immoral? How does this differ in any way from the sale of an assisted living facility or a nursing home?
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