By Jessica Solomon
Navigating the world of senior care can be overwhelming, especially when it comes to finding the right placement for a loved one. With an aging population and an increasing demand for senior living options, the senior placement industry has grown substantially in the past two decades. Unfortunately, this booming industry is largely unregulated, leaving families vulnerable to a range of potential problems.
What began as a niche service helping seniors and their families find appropriate care communities has transformed into a wide and diverse marketplace, with franchises, sole proprietorships, and even hybrid business models emerging. Real estate agents, once a distinct field, are now jumping into the senior placement game. But as more and more people enter this industry, it’s important to ask: who is overseeing this process? Who ensures that the individuals guiding families through one of the most significant decisions of their lives are properly trained and qualified?
As Joan Garbow, MSW, LCSW, CCM, outlined in her 2015 article “Senior Living Options: When ‘Free’ Is Not Really Free”, this is an issue that cannot be ignored. Senior placement agents are not required to have any formal training, licenses, or adherence to a code of ethics. They operate outside the standard regulations that govern industries like real estate or healthcare, raising serious concerns about conflicts of interest and the quality of advice they provide.
The Lack of Regulation: A Wild West Scenario
Imagine if real estate agents could operate without any licensing, training, or oversight—this is essentially what’s happening in the senior placement industry. Senior placement agents, unlike real estate agents, are not subject to the same rules. Real estate agents, for example, are expected to act in the best interests of their clients, providing unbiased recommendations and disclosing referral fees. They are held to high ethical standards, and any violations of these standards can result in losing their license. But in the senior placement world, this level of accountability does not exist.
Senior placement agents can earn substantial referral fees from licensed care communities when they successfully place a senior in their facility.
These fees are often not disclosed upfront, and since there is no licensing or code of ethics governing their actions, families may unknowingly be steered toward a facility that may not be the best fit for their loved one. Worse still, these agents are often not healthcare professionals themselves. While they may offer advice about senior living options, they typically lack the clinical expertise required to make informed, medically sound recommendations. As Joan Garbow rightly points out, many of these agents are salespeople or brokers rather than trained social workers, nurses, or geriatric specialists.
A Booming Industry with Little Oversight
The senior placement industry has exploded in popularity in recent years, creating a saturated market. With so many different agents, services, and models available, it’s difficult for consumers to know who to trust. Companies and individuals promising fast, easy solutions often take advantage of the urgency and emotional strain that families are experiencing. As more baby boomers enter the stage of caring for aging parents, the demand for senior placement specialists will continue to rise—and so will the risk of being misled.
While it’s clear that there is a need for more transparency and regulation in the industry, we must also consider the changing needs of today’s families. The new generation of adult children (often the children of baby boomers) is navigating the complex world of senior care with an emphasis on speed, efficiency, and—above all—transparency. They want to make informed decisions, not feel rushed or manipulated into choosing a facility based on incomplete or biased information.
What Can Consumers Do?
As consumers, the best way to protect yourself is to remain informed and cautious when seeking senior placement services. When considering an agent or company, ask for details about their qualifications, experience, and any affiliations with healthcare or geriatric organizations. Understand that “free” services often come with hidden costs in the form of referral fees, and be sure to inquire about these fees upfront.
It’s also important to question whether the agent is truly serving your best interests. Are they listening to your needs and understanding the unique circumstances of your loved one, or are they simply trying to close a deal? Remember, you have a right to ask for information and to make decisions that feel right for your family, regardless of the pressure that may be put on you.
Finally, advocate for change. This industry is overdue for regulation, and it’s only a matter of time before the levee breaks. As more families face the challenges of senior care, they will demand higher standards of accountability and transparency.
The Future of Senior Placement
As the senior placement industry continues to grow, it’s likely that more people, including everyday families, will become involved as specialists. It’s a trend we may see even more as families feel the pressure to act quickly in a fast-paced world. However, it’s crucial that we don’t allow the proliferation of untrained, unlicensed “specialists” to become the norm.
For now, the industry remains a “wild west” where anyone can hang out a shingle and claim to be an expert in senior placement. But as the demand for these services rises, so too will the need for regulation and proper oversight. We owe it to ourselves and our loved ones to demand better.
The Next Best Home is committed to raising awareness about these issues and advocating for change. Informed, ethical, and transparent care should be the standard, not the exception. Let’s work together to make sure that our elders receive the care they deserve.
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by Joan Garbow’s 2015 article “Senior Living Options: When ‘Free’ Is Not Really Free”. For more of Joan’s insights, visit Joan Garbow’s website.
