“Free” For-Profit Senior Services Referrals: Buyer Beware

Those online senior living referral services are getting a lot of attention these days. And not in a good way. The chairman of the US Senate Aging Committee has begun an investigation into assisted living referrals by A Place for Mom, one of the biggest commercial advice outfits. At the same time, more states are requiring firms to publicly disclose their financial arrangements with the facilities they recommend.

The business model for most of these companies is simple: They steer users to senior living or other service providers that pay them, generally without regard to quality. In some cases, they refer most often to those facilities that pay the most, either through a fee or commission, or by purchasing advertising.