Non-Profit vs. For-Profit Senior Living: Where Do Your Fees Go?

When families begin the search for senior living or skilled nursing in Rhode Island, the “sticker shock” is often the first hurdle. However, once the initial costs are understood, a more important question arises: What exactly are you paying for?

In the world of elder care, there is a fundamental divide in business models: Non-Profit vs. For-Profit. Understanding where your monthly fees go—whether they are fueling shareholder dividends or being reinvested into your loved one’s care—is the most critical factor in choosing a community.

At St. Elizabeth Community, our non-profit status isn’t just a tax designation; it is the cornerstone of our “person-centered” philosophy.

The Profit Motive vs. The Mission Motive

The primary difference between these two models lies in the “Who.”

• For-Profit Facilities: These are often owned by private equity firms or national corporations. Their primary obligation is to their shareholders and investors. Success is measured by “margins” and “return on investment.”

• Non-Profit Nursing Homes in Rhode Island: Organizations like St. Elizabeth are mission-driven. We do not have shareholders. Instead, we are governed by a local, volunteer Board of Trustees. Any “surplus” revenue is legally required to be reinvested back into the organization.

1. Where the Money Goes: Staffing Ratios

Data consistently shows that non-profit nursing homes in Rhode Island typically maintain higher staffing-to-resident ratios.

In a for-profit model, labor is the largest “expense” to be managed (and often minimized) to increase profit. In the non-profit model, labor is our greatest investment. Because we reinvest our fees, we can afford to hire more nurses, certified nursing assistants (CNAs), and specialized therapists.

At St. Elizabeth, this investment results in:

• More one-on-one time for each resident.

• Lower staff burnout and higher retention.

• Faster response times for clinical needs.

2. Reinvesting in Innovation and Environment

Have you noticed the difference in the physical environment of a corporate facility versus a community-focused one?

Because we are a non-profit, we prioritize capital improvements that directly benefit the resident experience. A prime example is our Green House® Homes. This innovative, small-house model required a significant financial commitment to move away from the traditional institutional “hallway” layout. While a for-profit entity might see this as a risk to the bottom line, St. Elizabeth saw it as an essential evolution of our mission to provide exceptional care.

3. The “Safety Net” Factor

One of the most stressful aspects of senior care is the fear of “outliving your money.” Many for-profit facilities may ask a resident to leave if their private funds run out and they transition to Medicaid.

As a non-profit with a deep-rooted history in Rhode Island, St. Elizabeth Community has a Philanthropic tradition that provides a safety net. Our “charitable mission” means we strive to support residents even when their financial circumstances change. We are here to serve the community, not just the “market.”

4. Accountability and Local Governance

When you have a concern at a corporate-owned facility, your feedback may have to travel through several layers of regional and national management before reaching a decision-maker.

At St. Elizabeth Community, our leadership is right here in Rhode Island. Our Board members are your neighbors—local business leaders, healthcare professionals, and community advocates. This local accountability ensures that our fees stay in Rhode Island, supporting the local economy and the seniors who live here.

The Bottom Line: Value Over Volume

While the monthly cost of a non-profit and for-profit facility may appear similar on paper, the value you receive is vastly different. Every dollar you spend at a non-profit facility works for your loved one.

Are you ready to see the non-profit difference in person?

Schedule a Visit to St. Elizabeth Community or call us at 401-739-2844 to discuss our care options and how we prioritize your family.