A. Home for Mom Cash-Strapped:
Nursing Home Failing Bond Covenants
What’s to know here?
A community-owned senior living campus was failing its bond covenants on a construction loan for a new assisted living complex. This option had recently been added to the nursing home and independent living campus.
The organization had already drained considerable community foundation cash for operating expenses.
Contract management that had been overseeing the senior living campus for several years had ended most management services.
What happened?
Solutions leadership assessed the organization, educating the board on the status of management, operational issues, and go-forward options.
Then Solutions staff effectively worked as a chief restructuring officer turning operations to achieve a positive operations cash flow.
Much of the improvement work involved billing and marketing. Filling all beds/units and correcting use of the billing system strengthened revenues. Stabilization of clinical staff also began reducing costs for temporary/traveling staff.
In collaboration with the team, leadership gaps were filled with excellent area recruitments.
Conclusion
This senior living campus is recovering financially and is well on its way to meeting its loan obligations. It will continue to serve its community in providing a caring home for its senior citizens.
A community-owned senior living campus was failing its bond covenants on a construction loan for a new assisted living complex. This option had recently been added to the nursing home and independent living campus.
The organization had already drained considerable community foundation cash for operating expenses.
Contract management that had been overseeing the senior living campus for several years had ended most management services.
What happened?
Solutions leadership assessed the organization, educating the board on the status of management, operational issues, and go-forward options.
Then Solutions staff effectively worked as a chief restructuring officer turning operations to achieve a positive operations cash flow.
Much of the improvement work involved billing and marketing. Filling all beds/units and correcting use of the billing system strengthened revenues. Stabilization of clinical staff also began reducing costs for temporary/traveling staff.
In collaboration with the team, leadership gaps were filled with excellent area recruitments.
Conclusion
This senior living campus is recovering financially and is well on its way to meeting its loan obligations. It will continue to serve its community in providing a caring home for its senior citizens.