Poor Financial Management
In nursing homes, poor financial management is typically evidenced by short-sighted or nonexistent financial planning, shoddy bookkeeping, negative cash flow, lack of reserves, and frustrated vendors. Poor financial management can lead to quality issues, loss of market share, low morale, and departure of key employees and is an excellent indicator that it’s time to switch your nursing home management company.
We’re all familiar with the old saying “no margin, no mission,” but maintaining positive cash flow is more important than the bottom line. We analyze and manage your accounts receivable collection, supplies inventory, accounts payable, and costs to keep your cash flow position positive.
Knowing your costs and maintaining positive relationships with your vendors are two simple ways to manage expenses. A solid understanding of how expenses relate to income is vital, and we ensure that your leaders are trained in proper financial management. We also emphasize the importance of managing vendor relationships to prevent costly interruptions in operations and to maintain your good reputation in the business community.
Collections are also vital to the financial health of your nursing home. Payment for healthcare is very complex and involves insurance, government agencies, and out-of-pocket payments. We have the knowledge and expertise to navigate these complex issues and ensure that collections remain current.