How are health institutions financed?

October 18, 2024
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How are health institutions financed?

How are health institutions financed?

Medico-social institutions play an essential role in supporting vulnerable people, such as dependent elderly people or people with disabilities. However, their financing is based on a complex model, combining public funds, resident contributions and private funding. The distribution of the budget should cover both the needs for care, accommodation, as well as the operating costs of health institutions. To face growing challenges, these structures are required to explore various sources of funding, whether through grants, partnerships or innovative initiatives such as calls for projects or sponsorship.

The nursing homes:

  • The financing of medical equipment and health professionals is covered by the ARS (Regional Health Agency) via Health Insurance benefits. These expenses are included in the Care budget health facilities.
  • The accommodation budget associated with catering, hotels, entertainment, is the responsibility of the residents, who can benefit from various aids such as APL (Personalized Housing Assistance) or Social Accommodation Assistance. If the establishment is eligible for ASH, it is the departmental council that defines the rate level. Otherwise, this rate is defined by the manager of the establishment.
  • Finally, support services aimed at compensating for the loss of autonomy, provided by caregivers and psychologists, for example, are financed by the departments. These expenses are included in the Dependency budget medical and social institutions. The associated dependency rate may be reduced for some residents eligible for APA (personalized assistance for independence) in institutions.

Disability Establishments:

The creations of FAM (Nursing Homes) are financed by Regional Health Agencies (ARS) and departmental councils. The “care” part is covered by health insurance (via the ARS), and the accommodation part by the department.

Residents are eligible for several benefits, such as the Allowance for Disabled Adults (AAH), and Social Housing Assistance (ASH).

Les MAS (Specialized Reception Centers) welcome people who need permanent care. Its residents most of the time have a daily package, financed by Health Insurance.

The Autonomy Residences:

Autonomous residences are financed mainly by the rents paid by the residents and benefit from funding from the departmental council for the animation of the residence. Residents themselves have access to aids such as APA at home, ASH or housing benefits.

Senior Serviced Residences (RSS)

Serviced residences are private homes specially designed for seniors. Residents can own or rent them. These residences offer a secure living environment allowing seniors to maintain their autonomy while benefiting from various collective services, such as catering, cleaning and entertainment. However, it is important to note that these structures are not adapted to people in a situation of dependency, as they do not fall within the medico-social sector.

What support is available for investment projects?

Schéma explicatif des différents organismes offrant des aides aux établissements de santé

Today, to deploy a solution like the Augmented Ear for caregivers, there are differences sources of funding for health institutions.

The Investment Assistance Plan (PAI):

Covering up to 50% of projects, the PAI, a mission of the CNSA and currently financed by Health Insurance, aims to provide financial support to institutions in their project to modernize and create places. This plan includes not only real estate investments, but also current expenses such as the purchase of equipment, materials, and the work necessary for the proper functioning of nursing homes. To submit a request for assistance, you can use the Galis Subsidy platform. Detailed instructions are available via this >link<.

Regional Health Agencies (ARS)

  1. Specific Calls for Projects: various calls for projects are launched by the ARS each year, on various themes (improvement of QWL, prevention of falls, loss of autonomy, etc.).
  2. Non-Renewable Credits (CNR): financial aid in the form of non-renewable loans may be offered by the ARS for medico-social institutions in order to finance an investment or to face exceptional expenses. CNRs intervene when a cash surplus is noted in the ARS.

The Departments

Of calls for projects punctual, as well as subsidies for associations in the territory are generally proposed by the departments. Health institutions that have an associative status are eligible for these grants.

To go further than the budgetary negotiations with the pricing authorities, and to allow faster access to the system, other aids exist in each territory.

The National Solidarity Fund for Autonomy (CNSA)

In addition to overseeing the PAI and the Funders Conference, calls for projects are also launched to support establishments welcoming senior residents, in particular in their efforts to modernize or renovate.

The Conference of Funders and the Loss of Autonomy (CFPPA):

It coordinates and finances, at the departmental level, initiatives aimed at preventing the loss of autonomy of people aged 60 and over, as well as actions relating to inclusive housing.

Funding is focused on several areas, such as equipment, preventive actions, support for family caregivers and autonomy packages. Technical aids, in particular those related to new technologies to prevent the loss of autonomy, are also concerned. At the same time, calls for projects are launched, and the departments ensure the selection of institutions benefiting from this aid.

The Occupational Health Insurance Fund (CARSAT)

This fund also offers financing, as do Complementary Retirement Organisations and other French foundations.

Are you looking for funding to deploy the Augmented Ear for caregivers in your establishment? Do not hesitate to contact theOSO-AI team who can guide you on the steps to follow!