Nursing Home Financial Analysis

The management structure will consist of:

• The director of nursing

• Nurse managers

• Supervisors

• Skilled nursing personnel

• Non-skilled staff

Human resources to hire and manage workforce, employee education, competencies and required compliances. Wages and benefits and risk management.

Lines of Services

• Long-term residential care

• Short-term rehabilitation support

• Skilled nursing care and treatment including medication administration

• Monitor laboratory values.

• Physiotherapy

• Wound management

• Personalized care and one to one feed as needed.

• Coordination of daily activity

• Leisure time activity

• Field trips

Physical Needs

• Bring building up to required code standards

• Hospital beds

• Wheel chairs

• Oxygen

• Bedside

and over-bed tables
• Lounge chairs
• Bed linens and towels
• Medical supplies such as medications, bandages, dressings, intravenous tubing, and fluids, various sizes syringes and needles.
• Cleaning and janitorial supplies
• Office furniture
• stationaries
• Chairs
• Computers and soft wares
• Stock rooms to store different supplies
• Cafeteria equipment and supplies
• Miscellaneous items
Financial Plan
Research analysis on the star- up debt for a nursing home business would be approximately $1,000,000.

There is a yearly revenue increase of about 7% every year, and if a loan is obtained for thirty (30) years the interest rate will be about 7%. These financial outcomes are based on unexpressed conclusions.

This research analysis has also show expenditure and revenue referred to as profit and loss in a statement for a period of three (3) years after:

• Operating income- such as payroll, and payroll taxes, licensure and fee, legal fees, insurance, rent and utilities, marketing, etc.

• Operating costs- services and goods sold

• Earnings before interest, taxes, and amortization (EBITA)

After all of the above analysis for 3 years the company continues to show an increase in net profit. Cash flow evaluation for the same 3 year period translated into a consistent increased in cash balance for the business. Consideration for a low-interest rate loan and investors would be a tangible option to start this business.

According to the U.S. Department of Health and Human Services in 2010 the average costs for long-term care were:

• $205 per day or $6,235 per month for a semi-private room in a nursing

home
• $229 per day or 6,965 per month for a private room in a nursing home
Therefore, larger semi-private rooms with attractive amenities will be a good selling feature, and a better increase in net profit.
Ethics, Laws and Regulations
Nursing homes has to abide by the same ethical principles, legal and regulatory standards as every health care organizations.

Patients’ rights do not change because of age or disability they have the right to be treated with respect and dignity. Be provided with informed consents, cared for with compassion, safety, and privacy. Everyone has a mandatory expectation to report suspected or actual abuse of any elderly residents. Measures must be put in place to secure patients’ medical information as required by the Health Insurance Portability and Accountability Act (HIPAA). Federal and states regulatory bodies requires proper licensing and certification for the business, and medical personnel who will be working with clients. This organization has to set up policies that is aligned with federal and states statues, and maintain up-to-date information on all changes to prevent denial to be able to participate in Medicare or any Federal or state health care programs, or any civil and or criminal litigation. Measures will also be put in to prevent fraudulent activities of any federal, states or private programs that will contribute to the clients’

needs.
The starting of a nursing home is a valuable asset in the healthcare market that will have significant financial benefits for the organization from the increasing number of the aging population and clients that may require healthcare services. Research has shown that some senior between 65 to 85 year old will need this service despite the financial condition of the economy.