1978 – Funding for the Future

Another issue was that the present financial model was not providing enough money to cover operating expenses.  No longer was it feasible to guarantee all domestic and medical care for the rest of a resident’s life in exchange for half of his/her assets and income.  The Board of Directors examined various alternatives available to properly finance the care of future residents and concluded that a monthly proration of the operating expense among the residents was the only feasible approach to the financial arrangement between the Home and a future residents considering the inflation and costs of providing the proper care and environment for the residents. 

In 1978 the new entrance fee had been replaced by a once-time $500 deposit and the requirement for new residents to provide half their assets and income was waived.  Each new resident was required to pay a monthly fee which would not exceed a resident’s proportionate share of the monthly operating cost of the Home.  The actual amount of the monthly fee to be charged a new resident entering the Home after July 1, 1978, was the actual operating cost proportioned to the number of residents and reduced by the amount that the Board deems appropriate after taking into consideration increases or decrease in operating cost and endowment income, capital improvement costs, current and anticipated sums being charged by other retirement facilities which offer an alternative to the Home, and the ability of a person of modest means to meet the said obligation.