P.E.I. community care homes raise self-pay rates in face of rising costs

Some community care facilities on Prince Edward Island are raising rates for self-pay residents to help cope with skyrocketing costs.

Don MacLean's 89-year-old mother lives in a care home in Prince County, and the cost for her to do so is not subsidized by the province. She pays her monthly expenses through a combination of Old Age Security and savings. 

MacLean says his mother's monthly payments are going up 25 per cent starting May 1 — from $2,465 to $3,100 — and only 16 days' notice was given. 

He says the family can manage for now, but wonders about the future. "We know that that's the rate for this year, but we don't know what the rate is for next year. We don't know how long this rate is for."

The province and the P.E.I. Association of Community Long Term Care negotiate funding rates for subsidized residents who are deemed to need care and qualify for the province to cover the costs. But for people who pay their own living expenses, like MacLean's mother, the monthly rate is at the discretion of the operator.

"Basically all it seems that [the province is] doing in community care is make sure that the homes are safe, that the people are safe, the fire regulations and everything met," MacLean said. 

"But as for the rents, they're leaving that up to the landlords and they can set that whenever they want to increase it."

'Significant increases'

Cecil Villard is the executive director of the P.E.I. Association for Community Long Term Care, which negotiates with the province on behalf of subsidized residents. 

He says basic operating costs have increased substantially over the last few years, and some operators likely hadn't increased their self-pay rates regularly enough to keep up.

"If you look back over the last three years, I think you can probably conclude that there have been significant increases that operators have had to endure as a consequence of significant increases in insurance, fuel, food, labour — all of those costs have gone up."

P.E.I. Seniors Homes CEO Jason Lee says the company reviews its homes' self-pay rates regularly and gives residents two months' notice when they are about to change.

"Every home does this differently because it's not standardized. But what we do is we sort of follow along with the IRAC calendar," he said, referring to the Island Regulatory and Appeals Commission.

"Every October IRAC will announce what the annual percentage increase would be … for landlords to pass onto their tenants. We don't necessarily use that exact percentage, but we try to stay within that range," Lee said.

"It gives us a guideline where no guideline exists … And that way we don't have to fall so far behind by not doing it that we have to pass on an extra-large increase to try and catch up."

'It's a lot of pressure'

Colleen Parker is the executive director of the Phillips Residence in Alberton, a not-for-profit community care home.

Parker said every single cost associated with running the home has gone up. The fuel bill doubled from 2021 to 2022, insurance increased by 40 per cent in just over two years, and labour and food costs have increased, too.

She said she's been forced to increase rates by $445 per month because it costs more to deliver the same level of care.

"I have been in this work for nine years now and I can tell you the last year and a half has been the most challenging financially," she said.

"It's a lot of pressure when you're trying to pay the bills and pay staff and just keep the facility running when there's not enough revenue."