More and more are choosing what in Oregon is called "Adult Foster Care". Essentially they are private homes that are licensed by the State to provide custodial care. For those who need supervision and assistance with age related conditions it works well and is significantly less expensive. They can't care for persons who are aggressive or who need skilled nursing.
What is interesting to me is that even well-to-do families are choosing that option. Usually they have tried the home care route but find that managing staff doesn't work well (horror stories abound). The frail elderly can be difficult, one family moved their mother to adult foster care because she had the nursing home staff buffaloed, she wouldn't bathe. The adult foster care provider handles her like a parent with a willful 3-year old, she now bathes when told to and seems to enjoy a more family-like setting.