New Aase Haugen Facility Nears Completion Amid Cost, Care, and Staffing Questions

We cover Decorah because we love it. Show your love back — donate today. DECORAH — On a hillside along Nordic Drive, the new $20 million, 75,000-square-foot Aase Haugen Senior Services campus promises a "home-like," private-room model of care for older Iowans in Winneshiek County. The nonprofit facility, founded in 1915 and operating out of its current Ohio Street building since 1964, is undergoing a generational transformation under its capital campaign, "A New Place to Call Home." Construction began in April 2024, with substantial completion projected for November 2025. When completed, the facility will feature: 78 private rooms for skilled nursing 18 beds for memory care, including specialized dementia design 12 assisted living apartments Private bathrooms in every room A chapel, natural lighting, walking paths, and "neighborhood" layouts The project site, adjacent to Aase Haugen's independent living neighborhoods Vennehjem and Nabotunet, was already owned by the organization. Financial Realities: Costs for Residents Are RisingResidents in the assisted living program will see monthly costs increase by 40 to 80% depending on their service tier and apartment size. For example, one-bedroom apartments with moderate services that previously cost about $3,400 now cost about $4,755 or more. "My mother's rent is jumping from $2,850 to $4,955," said a family member of a current resident, who asked not to be named. "She will be forced to leave. We are currently searching for other options." To ease the transition, existing residents have been offered a $650 monthly discount for 12 months, but after that, full rates apply. According to Director of Operations Rex Nelson, the higher fees reflect both inflation and expanded offerings. "Our assisted living rates are a bit higher than average but appropriately reflect the square footage, amenities, and quality of the space," Nelson said. Side-by-Side Cost Comparison: Old vs New Aase Haugen Unit / Scenario Old Building Monthly Cost New Building Base / Comparable Cost Approx. Increase ($) Approx. % Increase Efficiency / Basic Level ~$2,420 1-BR base: $4,380 + ~$1,960 ~81% Large 1-Bedroom, Basic Package ~$2,990 1-BR base: $4,380 + ~$1,390 ~46% Moderate / Tier 2 Equivalent ~$3,190–$3,410 1-BR + Tier 2: ~$4,755 + ~$1,345–$1,565 ~42–49% 2-Bedroom / Dual Occupancy / Tier 2–3 N/A (not offered similarly) 2-BR + 2nd occupant + Tier 2 & 3: ~$8,465 N/A Much higher (2×+) Statewide data show assisted living costs in Iowa are increasing across the board. The 2024 median statewide rate is approximately $5,185 a month, placing Aase Haugen's new rates within the expected range, though significantly above what many longtime residents were paying. "The cost of our services adjusts yearly. We're very diligent, as a nonprofit, in making those adjustments appropriately," Nelson said. "Medicaid rates are set at the state and federal level. They don't cover the full cost of care, so we typically have to offset losses from Medicaid with increases to private pay." He also cited rising operational costs such as insurance, food, supplies and wages as key contributors. Aase Haugen currently draws 30% of its revenue from Medicaid, 8% from Medicare, 20% from Veterans Affairs and 42% from private pay. "Our assisted living program is privately paid. There's not really an insurance product for that level of care," Nelson said. "We do help families transition to Medicaid for nursing home care if they run out of private funds, but assisted living has fewer supports." Can Residents Stay in Decorah?For families priced out of the new facility, options in Decorah are limited. While nearby facilities such as Wellington Place or Oneota Village offer alternatives, Aase Haugen's integration of independent living, memory care and skilled nursing remains unique in the region. "If someone doesn't fit the assisted living program, our social services designee helps coordinate with other facilities of the tenant's choice," Nelson said. "We try to ensure continuity of care where possible." Staffing ChallengesThe new facility is not expanding licensed bed count dramatically, but its new layout, service offerings and resident needs will likely require more staff, especially in nursing and direct care. According to Nelson, staffing is a constant focus, but leadership believes they're positioned to grow. "Most of our departments are fully hired," Nelson said. "We have no key positions open, and our leadership roster is the strongest I've seen since I began here. Currently, we have staff at above-average levels with the goal of increasing our staff-to-resident ratio." Wages for direct care roles at Aase Haugen appear competitive. Current job listings show CNA wages at about $20.50–$27.50 per hour and charge nurses (LPN to RN-BSN) at $32.30–$44.00 per hour, according to Indeed.com. "Our wages are in the 90th percentile nationally," Nelson said. "That's very strong, especially considering that Iowa is historically one of the lowest-wage states for nursing professionals." If staffing falls short during the transition, the organization will engage temporary staffing agencies, though Nelson said this is not preferred. "We've designed this new facility with workflow in mind. Storage, access to technology, and layout are all meant to reduce the burden of work and improve quality of life for staff and residents." Moving ForwardAs construction on the new building enters its final months, Aase Haugen is poised to reshape the way elder care is delivered in Decorah. But balancing that vision with affordability and trust remains an ongoing process. Feed your curiosity! 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