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How Do Senior Placement Agencies Get Paid?

Most often, senior placement agencies make money when someone they refer to a senior care residence moves into that residence.

Have it in mind that the senior care residence compensates the senior placement agency for helping it get clients. In most situations, the referral service receives the equivalent of one month’s rent in compensation. Simply put, senior placement agencies are enterprises that aid individuals in choosing the ideal senior home for themselves or their loved ones.  

Note that selecting the ideal care home surprisingly remains a daunting process, particularly for individuals who are unfamiliar with senior care and who are currently caring for an elderly person.

When a person first reaches out to a senior placement agency, either by phone or by interacting with their website, specific information regarding that person is gathered. This can include their name and contact details, the relationship to the person who requires the care, as well as the city or town where they intend to find the residence.

Following the discussion with the placement service, the agency will then make available the necessary information to several senior care communities within the intended location. Once this is done, it then falls on the senior care communities to start the calling.

You need to understand that this whole process occurs very rather quickly because the intention of the agency is to get credit for introducing the individual to the senior care community. This will ensure that they get paid by the community if the individual eventually moves in. Note that the agency will most definitely get paid irrespective of which senior care residence the individual chooses.

Ways Senior Placement Agencies Get Paid

  1. Commission from Senior Living Communities

Just as was noted above, this is without doubt the primary means of revenue generation for senior placement agencies. Have it in mind that these businesses tend to receive a commission or referral fee from the senior care homes where they place clients.

Once the agency successfully places a client in a good senior care home and the client chooses to move in, note that the care home in question immediately pays the agency an agreed sum, which could be the client’s monthly fees or a one-time commission.

  1. Private Payment by Clients or Families

Although most senior placement agencies do not charge clients or their families but rather the care homes, have it in mind that there are instances where they charge the client rather than the care home.

Although this is rare, note that it is possible for a senior placement agency to choose to charge a fee directly to the client or their family for their placement services. In this situation, the fee might be a one-time payment or might be an ongoing fee for continued support and assistance.

Howbeit, the fee or the structure will most definitely depend on the pricing model of the agency as well as the sort of services provided.

  1. Contracts with Healthcare Providers or Agencies

It is also possible for senior placement agencies to develop contracts or partnerships with healthcare institutions, insurance firms, or government agencies. In this particular scenario, have it in mind that this agency will then have to receive payment directly from these entities for their services.

Nevertheless, have it in mind that the components and terms of these contracts will differ and might have to encompass flat fees, per-placement fees, or other negotiated agreements.

  1. Consultation or Advisory Fees

In this modern age, there are senior placement agencies that offer more than just placement services but also provide additional services that might include consultation, care evaluations, or personalized care planning. Have it in mind that senior placement agencies that offer these services will very well charge clients or their families for those extra offerings. Most often, this will be on an hourly or project-based basis.


Just as was noted above, senior placement agencies make money when someone they refer to a senior care residence moves into that residence.

However, it is imperative you understand that the amount, arrangement, and structure will most definitely vary from one business to another. Owing to that, take your time to ensure you have a clear understanding of what the fee structure looks like. Make sure to ask questions and get clarification on things such as the payment terms.

Pay due attention when reviewing any contracts or agreements to ensure you have a good grasp of the details and avoid any misunderstandings.