Being involved in educating loan officers, loan committees and private investors regarding certain elements of adult day care can be a really eye opening experience. Many are quite excited about adult day care and how with appropriate partnerships with other long-term care providers, these programs can really make a difference along the care continuum. They especially have a role in enhancing patient stability while being served in the community after a hospital discharge.
Some who are approaching adult day care from a financial perspective note that certain elements are often missing from business planning documents. Since we often write them we thought we would share this with others who also write them, including current or future adult day services providers who are preparing a strategic document for yourself.
I. Consider with Accuracy Medicare Income
Some contemplate operating as a rehabilitation facility or more specifically as a CORF, Comprehensive Outpatient Rehabilitative Facility, but when forecasting your income you fail to consider any revenue from Medicare or private payers for medical rehabilitation services in your first 5 year projections. Others do so but without accuracy which appears to be be tied to a lack of knowledge of likely reimbursement amounts. A professional relationship with an experienced skilled care advisor or biller could help you with this.
2. High Expectations; No Justification
Some indicate a plan to serve 150 to 200 people per day. At the same time when financiers review activity of a center 10 miles away from you which has never served more than 50 per day they want to hear what will attract so many more participants to your program. Is it the fact that you have a barrier free shower and will double as a Personal Care Plaza? Is it because you will add physical rehabilitation? Is it because you will provide free transportation? There needs to be definitive dialogue associated with how you present special advantages that competitors do not.
Surely it is understandable that in order to attract the support of those we need, we need to be free and accurate with information. That process starts with you. Here is our wish that it is a most productive one in the end.
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