How Much Does It Cost to Run an Adult Day Care Facility?

Running an adult day care facility can be rewarding but comes with significant financial responsibilities. Understanding the costs involved is crucial for profitability, compliance, and long-term success.

In this guide, we break down the typical expenses adult day care owners can expect.

Key Costs of Running an Adult Day Care

The costs of operating an adult day care vary depending on location, size, and services. Below is a detailed breakdown:

1. Facility Rent or Mortgage

The cost of your facility depends on location and size. On average:

• Small facility (10–20 clients): $2,000 – $5,000/month

• Medium facility (20–50 clients): $5,000 – $10,000/month

• Large facility (50+ clients): $10,000 – $20,000/month

2. Staffing and Payroll

Staff costs are the largest expense. Typical monthly payroll includes:

• Caregivers / aides: $12 – $20/hour each

• Administrative staff: $3,000 – $5,000/month per employee

• Specialized therapists (PT/OT, memory care): $40 – $70/hour

Estimated total monthly payroll: $8,000 – $25,000 depending on facility size.

3. Licensing and Compliance Fees

Licensing requirements differ by state, but costs may include:

• Initial license application: $200 – $1,000

• Annual license renewal: $100 – $500

• Inspections and background checks: $50 – $200 per staff member

 Check your state’s adult day care regulations for accurate information.

4. Equipment and Supplies

Essential items include medical supplies, mobility aids, office furniture, and technology. Average costs:

• Startup equipment: $5,000 – $15,000

• Ongoing monthly supplies: $500 – $2,000

5. Utilities and Maintenance

Monthly costs for electricity, water, internet, and cleaning:

• Small facility: $500 – $1,000/month

• Medium facility: $1,000 – $2,500/month

• Large facility: $2,500 – $5,000/month

6. Insurance

Insurance is essential to protect your investment. Key policies include:

• General Liability: $500 – $2,000/year

• Commercial Property: $1,000 – $3,000/year

• Commercial Auto: $1,000 – $3,000/year

• Workers’ Compensation: $2,000 – $6,000/year (depends on staff size)

• Professional Liability: $500 – $1,500/year

Wexford Insurance helps adult day care owners nationwide find coverage tailored to their facility. .

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7. Marketing and Client Acquisition

Promoting your facility is vital for growth:

• Website development: $1,000 – $3,000

• Local advertising & social media: $200 – $1,000/month

• Community outreach and events: $100 – $500/month

Struggling to market your business? Visit  Contractor Back Office for website  SEO and marketing support.

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Average Monthly Cost Summary

Expense Category	Small Facility (10–20 clients)	Medium Facility (20–50 clients)	Large Facility (50+ clients)
Facility Rent/Mortgage	$2,000 – $5,000	$5,000 – $10,000	$10,000 – $20,000
Staffing/Payroll	$8,000 – $12,000	$12,000 – $20,000	$20,000 – $25,000
Supplies & Equipment	$500 – $1,500	$1,000 – $2,000	$2,000 – $3,000
Utilities & Maintenance	$500 – $1,000	$1,000 – $2,500	$2,500 – $5,000
Licensing & Compliance	$50 – $200	$100 – $400	$200 – $500
Marketing & Advertising	$200 – $500	$500 – $1,000	$500 – $1,000
Insurance	$500 – $1,500	$1,500 – $3,000	$3,000 – $6,000

Total Estimated Monthly Costs:

• Small facility: ~$11,750 – $21,700

• Medium facility: ~$20,100 – $38,900

• Large facility: ~$38,200 – $60,500

Final Thoughts

Operating an adult day care facility requires careful budgeting and financial planning. By understanding the full spectrum of costs, optimizing operations, and protecting your business with insurance, you can ensure profitability while providing high-quality care.

Wexford Insurance helps adult day care owners find the right coverage to safeguard their facility, staff, and clients.

Contact us today.

Frequently Asked Questions (FAQs)

1. What are the licensing requirements for adult day care centers in each state?

2. Is owning an adult day care profitable?

3. How can I hire and retain the best staff for an adult day care center?