Pros and Cons of Nonprofit and For-profit Senior Communities
When you’re shopping for a senior living community, one thing that might not be immediately obvious is the community’s financial status. Is it a for-profit or nonprofit community?
According to the dictionary, “for-profit” is a business “initiated or operated for the purpose of making a profit,” while “nonprofit” is a business “not established for the purpose of making a profit, not entered into for money.”
Those are simple distinctions, but they can make a significant impact on your experience at a senior living community. Let’s break down the potential differences a little more.
For-profit communities are accountable to their shareholders, and there’s a focus on the bottom line. Their goal is to take profits and reinvest them into making more money. Nonprofits are grounded in a mission that puts residents first. Their goal is to reinvest profits into the community and services that will benefit the people who live there.
Quality of services
According to an article in U.S. News & World Report, for-profit senior living communities tend to have poorer quality of care in general compared to nonprofit communities when it comes to factors like staffing, quality scores and inspection ratings.
The mission of a community defines its purpose. As a nonprofit, and guided by Christian values, the mission of The Philadelphia Protestant Home (PPH) is to provide a caring senior living community that affords its residents the opportunity to achieve their highest-possible quality of life. The focus is on customer service, NOT profit. As you’re looking for a new place to call home for the next chapter of your life, be sure to consider each community’s mission and whether it is more focused on profits or on people.
Lifetime peace of mind
Another consideration when deciding between nonprofit and for-profit communities is your security as the years go on. As a nonprofit, PPH offers a program called Benevolent Care, which is supported by its annual gala and other fundraising efforts. This means that the community raises donations to make sure that, should residents’ resources be depleted through no fault of their own, they will still be able to continue to live at PPH. In contrast, at some communities, residents are asked to leave if they run out of funds.
Of course, there are for-profits that provide good service, and there can be poorly run nonprofits as well. “For-profit vs. nonprofit” is just one more element to consider when you’re weighing your options and deciding which community you will ultimately choose.
At PPH, we are happy to tell you more about how our nonprofit mission will impact your overall experience at our community. To learn more, call us at 215-697-8000 or click here to watch our Virtual Information Series, a series of informative videos about life at PPH.