Wednesday, September 20, 2017

RTI Releases Report on the Impact of Minimum Wage Increases in Assisted Living

Lindsay Schwartz

The Research Triangle Institute (RTI) International conducted a study which examined the potential impact wage increases would have on assisted living (AL) and continuing care retirement communities (CCRC). RTI researchers examined the impact of raising the hourly minimum wage to $10, $12, and $15 per hour. The report includes the number of AL and CCRC workers who would be impacted by minimum wage increases and the average wage increases per worker, both nationally and in select states.

Researchers also examined the impact to providers, including the average total cost increase in the direct labor costs per worker and across workers. The report found that the average financial impact of a $10 or $12 minimum wage would be 1 percent and 5 percent in total costs, respectively. Overall, a $15 minimum wage would increase provider costs by a roughly 13 percent.

This study was conducted in a partnership between RTI International and the Center for Excellence in Assisted Living (CEAL). NCAL Senior Director of Workforce & Quality Improvement Lindsay Schwartz, Ph.D., is Board Chair of CEAL.

“There is a constant need to attract and retain staff who can provide quality care, and there’s also the challenge of keeping costs affordable for individuals and families who rely on these communities,” said Schwartz.

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