|D. Freeman and John Belko|
This presentation came from D. Freeman, the Premier Administrator working at Gracedale. He was assisted by John Belko, Premier's VP of Operations. Freeman did most of the talking.
The biggest change under Premier has been a significant increase in residents at Gracedale. The census has grown from 590, when Premier first took over, to a high of 681 at the time of the presentation. The more patients, the more revenue.
Administrator D. Freeman has also aggressively pursued accounts receivable. There are bi-weekly accounts receivable reviews going through each file. A collections law firm has brought in $1.4 million, and payment plans are in place for some accounts that were written off in the past.
Through effective us of risk management, workers' compensation claims have dropped from $2 million in 2011 to just $166,000 last year.
But labor still eats away at 67% of the operational costs, compared to an industry standard that varies between 25 and 35%. "This is the killer for us," remarked Freeman. He noted that the facility is about as full as it can be, so that revenue is already maximized. In addition to these high labor costs, the nursing home is at the mercy of declining reimbursements from the state and federal government.
In 2014, Northampton County budgeted $5.85 million to support Gracedale. It spent $6.7 million.
Updated 2/24: An earlier version of this story contained an incorrect link to Premier.