Your father is unable to perform many of the activities of daily living (ADL), including feeding and bathing himself. He considers moving from his apartment to a nursing home. The nursing home application asks for financial information from you and your siblings concerning how much you are able to contribute financially to his care. This is an example that the shared income hypothesis is being employed.

Question

Quizplus · Accepted Answer

The shared income hypothesis suggests that the financial resources of family members are considered collectively when determining the ability to pay for services such as nursing home care. The application asking for financial information from the children indicates that the nursing home is assessing the family's combined financial capacity to contribute to the father's care.

Your Father Is Unable to Perform Many of the Activities