Assisted-living facilities and nursing homes are both considered long-term-care facilities. They provide meals and housing, promote dignity, assist with daily living and offer scheduled activities for the aged and disabled. So, what is the difference between assisted-living facilities and nursing homes? If you need to find placement for yourself or a loved one, consider some of the key characteristics of each.
Level of Care
Assisted-living facilities help with personal-care needs, such as meals, bathing, grooming, laundry and reminders to take medication. Some assisted-living facilities even have special care units that specialize in memory disorders such as Alzheimer's disease, according to the Assisted Living Federation of America. Although these facilities are not licensed to provide medical or nursing care, services may be available through home health agencies or other outside resources.
Nursing homes provide assistance with activities of daily living, as well as nursing and medical services such as intravenous medication administration, sterile dressing changes and physical, speech and occupational therapy. Care is supervised by a physician and provided by licensed nurses, dietitians and therapy professionals.
Purpose and Length of Stay
Assisted-living facilities offer the safety and convenience of supervised living but promote as much privacy and autonomy as possible, making them an appealing long-term alternative to both independent living and nursing homes.
Nursing home residents might use skilled services and stay just long enough to rehabilitate from an illness or injury, or they may need long-term care lasting months or even years.
Cost and Payer Source
The average cost of a private room in an assisted-living facility is $3,131 monthly or $37,572 a year, while a private room in a nursing home runs $219 daily or $79,935 annually, according to the 2009 MetLife Market Survey of Long Term Care Costs. Nursing home stays are covered by Medicare or Medicaid when certain conditions are met. According to the Henry J. Kaiser Family Foundation, 14 percent of all nursing home stays are funded by Medicare, while 64 percent are funded by Medicaid.
In assisted-living facilities, private pay and insurance are the most common funding sources (86.2 percent, according to the Assisted Living Federation of America), but states are beginning to implement programs to fund low-income seniors through Community-Based Assistance programs. You can get more information from your state's Medicaid or Health and Human Services Department.
Regulatory Oversight
Ninety-seven percent of nursing homes accept Medicare and/or Medicaid and are therefore federally regulated by the Centers for Medicare and Medicaid Services. Private nursing homes and all assisted-living facilities are regulated by the states in which they are located.
Every state, however, is responsible for investigating complaints in both nursing homes and assisted-living facilities.
Size
Assisted-living facilities vary greatly in size from three or four beds in a private house to large communities serving hundreds of residents in an apartment-like complex. Nursing homes also vary in size but tend to be larger and more institutional in appearance and function.
Populations
The Assisted Living Federation of America reports that more than a million people reside in assisted-living facilities, while 1.8 million live in nursing homes. As the over-65 population continues to grow, it is expected that both assisted-living facility and nursing facility populations will increase.


