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Turning a Failing Care Center into a Peak Performer
The Problem:
This care center had several ownership changes in a short time period. The owners were absentee owners from another state. Morale was low. Employee turnover and resident vacancies were high. And the residence was losing substantial amounts of money. On top of all this the care center had performed horribly on its survey, which led to the state barring it from admitting more residents. New management saw a need for immediate help and called Ecumen Consulting Services.
Our Solution:
We did an immediate clinical and operational analysis. The assessment uncovered that the owners’ attempts to save costs on meals and staffing were actually causing the organization to lose money, destroying morale and leading to substantial performance problems.
Our recommendations led to an organizational restructuring. We analyzed every position and its value to the care center and its residents. Several positions were eliminated. RN staff was doubled. A ward helper program was initiated to eliminate minor survey violations that previously accumulated into major and expensive problems. During the transformation process we visited frequently to monitor new initiatives. Today the care center is fully occupied, turnover has decreased, and the care center has increased revenues by nearly $1 million and is now profitable.
Navigating HUD to Turn Vacancies Into Occupancies
The Problem:
Owners of an affordable independent housing residence were having difficulties filling their residence. The residence had a high vacancy rate with more than 20 “efficiency” apartments sitting vacant. Several had been vacant for more than two years. This meant a revenue loss of nearly $10,000 per month. The owners sought us to help them market the building. Immediately we saw that no amount of marketing would help fill efficiency units when customers were seeking larger apartments.
Our Solution:
We advised our client to save their marketing dollars and instead helped them identify and navigate through several Department of Housing and Urban Development (HUD) opportunities. We helped our client:
- Secure approval and financing to take efficiency units out of service and turn them into more desirable one-bedroom apartments.
- Secure approval to maintain Section 8 subsidies for the apartments once converted to one-bedrooms.
- Renewed their Section 8 contract with HUD and aligned the contract with our client’s fiscal year to save them substantial compliance paperwork.
Today the building is full, revenue losses have been reversed and residents thoroughly enjoy their larger homes.
Enhancing Reputation and Profitability
The Problem:
A 96-unit suburban assisted living residence had just come out of receivership after being owned by a Fortune 500 company. The residence had a poor reputation in the community, substantial employee turnover and had never leased more than 38 percent of the units.
Our Solution:
- We developed an aggressive marketing plan with an emphasis on relationship building with referral sources and community events.
- We secured a contract with the county for elderly waiver/alternative care.
- We developed a plan to open care suites to meet the expanding needs of residents.
The project is cash flowing at approximately $13,000 per month at 80 percent occupancy. Employee turnover has been substantially reduced and, based on opinion surveys, customer and employee satisfaction have increased significantly. The residence was recently named the “Best Assisted Living Residence” as voted upon by readers of the local newspaper.
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