Foreclosures and the economic downturn are taking a new twist, as the CEO of a local chain of assisted living centers just put 14 of them into Chapter 11 bankruptcy.
This is a particularly difficult issue for those in Alzheimer's or Dementia Memory Care units, because, familiarity and routine are very important. It could be potentially quite traumatic for a person to have to move to a different facility, and meet new staff, and learn new layouts.
Who will take over these bankrupt facilities? Sunwest Management CEO sought an injunction to stop nine big investment banks from seizing the most profitable of the company's nearly 270 assisted living centers across the country. Sunwest owes over $2.6 billion in debt.16,800 seniors in Sunwest's centers around the country, including about 5000 in Oregon, wait to see how it will affect their housing. One local facility is already part of a foreclosure proceeding. That facility is now in a position they do not have the authority to pay it;s 46 employees a total of $43,400 for work done in the last two weeks of December.
No one can expect employees to continue to report to work and not be able to pay for their living expenses.
You have to think these fragile seniors are not on the bailout "A" list ~ if at all.
Often times hotel chains run such facilities. The problem is, you don't just check in to a care facility. Often times the better facilities can have a one to two year waitlist. They may require a $500 deposit just to be to be on the waitlist, as well as full financial disclosure. A lot of so called care facilities only care while you still have $.
They don't accept medicare, so when your money runs out, and Memory care may run $7000 or more PER MONTH-- the $ will run out, and then they quit caring. The facilities that accept medicare are back in the waitlist mode & charge a hefty fee to even get in line for a potential opening, a year or more, later.
I'm not sure it is related to the residents also having problems selling their houses. My Mom's house is paid in full, but it is on the market flooded with rock bottom reduced price homes in foreclosure. It feels like we are stuck in a vortex that is spinning out of control.
Speaking of foreclosures, another innocent victim of this problem is pets. People who have pets when they go through whatever economic trauma that gets them to the place of foreclosure, find themselves in a place of being unable to afford to care for or give space to the care of a pet. In the online animal shelter website, I noticed they have a column that lists where the animal is found. Several animals have "LCAS FRONT DOOR", (county animal shelter) people are doing drop and run pet check in, because they probably don't have the $ to pay the fee to put them up for adoption. Others are just leaving pets behind in the foreclosed home, or turning them loose. This has led to overcrowded shelters, and 50% of incoming animals are being put to death.
Locally, our shelter almost closed it's doors entirely, because of budget cuts. I see lots of animals in Foster care, volunteers picking up the slack by taking care of some of the overflow of animals, but they are full to the max, and as more people lose jobs or are laid off, they are reluctant to take on another mouth to feed, and all the expenses to properly care for a pet. The article I read said people should check yards of foreclosed homes, to make sure owners did not just abandon animals.
Screw Wall Street! The more billions we give them, the less they learn about the consequences of their actions. Bailout people going into foreclosure, including Eldercare facilities, and animals that are innocent victims of foreclosure.