Wisconsin bill seeks 'transparency' from senior care referral companies

WAUKESHA, Wis. - The search for senior living often happens during a crisis. Amid the emotions and stress, a referral agency can help to narrow the field of assisted living options. The services are free to customers, yet agencies can make thousands of dollars per person. Advocates of a Wisconsin bill say it would require further transparency. 

Senior care referral companies

The backstory:

Brenda Brito's mother, Shirley, is learning her way around Summit Woods Senior Community in Waukesha. She moved from Madison to be closer to family.

"For me, it's about location," said Brito. "I live here in Waukesha. I just needed her to be closer."

During her search, Brito used the senior care referral service, A Place for Mom. It didn't cost her anything. The service is paid in fees from participating facilities for successful referrals.

"I said, "I'm not interested in getting information on anything that's more than a five-minute drive," Brito told Contact 6.

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Brito said she was flooded with calls from facilities much further away. She spotted Summit Woods near her son's school and wanted a referral. She didn't get one from A Place for Mom.

"The more I just got thinking about it, I thought, 'OK, I see what's going on,'" said Brito.

What they're saying:

Summit Woods said it's not within A Place for Mom's network. That means it doesn't have an agreement to pay a fee in exchange for placement.

"I'm fishing in a limited pond," Brito recalled. "It's not the full gamut of choices."

Brito had previously used A Place for Mom to find housing for her mom in Madison and was satisfied with that experience.

Bill up for consideration

Big picture view:

Brito supports a bill in Wisconsin that would require senior care referral agencies to disclose their financial ties to prospective residents, plus any fees being paid.

• Assembly Bill 255
• Senate Bill 262

The Wisconsin Assisted Living Association (WALA) is advocating for the legislation. 

"Because (agencies) only refer you to those they contract with, you’re not getting a full picture of everything that’s out there," said Mike Pochowski, president of WALA. 

LeadingAge Wisconsin, AARP and the Wisconsin Health Care Association also support the bill. 

Pochowski said facilities pay thousands of dollars per referral. According to WALA, eight other states have similar laws in place, including Arizona, Colorado and Texas.

"It's not a free service," said Pochowski. "There are fees that are charged to the provider."

Pochowski also has concerns that there's not enough vetting of the facilities.

The other side:

Margaret Cabell is the Chief Community Relations Officer for A Place for Mom.

"Transparency is really important to us," said Cabell. "We really do strive to make sure we are clear about who they are taking to on the phone, how we get paid, and how we make recommendations."

Cabell said the service discloses how it's paid on its website, on the phone with clients and in a follow-up letter. She said if a facility can't provide a specific care need, it will let the family know. 

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"We do provide feedback and guidance on what communities can and can't do based on our knowledge," said Cabell. "We never discourage. In fact, we're always encouraging education."

Cabell said most placements are within their network, and they only refer to licensed facilities. She said about 250,000 families contact A Place for Mom in a year, and their website's database includes listings for out-of-network facilities.

Cabell said clients are told to expect phone calls and emails from facilities that meet their criteria.

Local perspective:

At least one Wisconsin-based referral agency opposes the bill.

"It does create an illusion that there is a problem," said Lauren O'Desky of Oasis Senior Advisors. "Disclosure and transparency are of the utmost importance." 

O'Desky said her business regularly places clients in facilities that pay no fee. A fee is often equal to one month's rent.

"Most of the time, people are coming to us in a crisis," said O'Desky. "What this legislation does is create a lot more paperwork and confusion."

A new home 

Dig deeper:

Brito said she felt steered away from Summit Woods.

"In that sense it's misdirection," said Brito. "It was deceptive."

Brito said she's happy with her mother's new home and having her close by. She contacted Summit Woods without a referral, and said it meets her mother's needs.

"If I had not followed through, my mom would still be in Madison and sitting alone. I think that's unacceptable," said Brito.

What's next:

The Wisconsin bill remains in committee. WALA is pushing for a vote in the Senate Committee on Health. It's unclear whether it will be taken up for a vote before the legislature adjourns.

Wisconsin's Aging and Disability Resource Centers (ADRCs) can also provide free guidance for families seeking appropriate senior living.