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Maximize Your Resources - Part III of IV

by Joan Bachman

MAXIMIZE YOUR RESOURCES
People - Time - Money - Information

The Only Place You Find "Success" before "Work" is in the Dictionary.
Survival and growth of an organization relies on effective use of available assets.

Part III - MONEY

Pay attention to pennies and the dollars will take care of themselves. “No Margin, No Mission”.

Planning and Budgeting

a. Your Workplan is the basis of daily business operations. (from Part II)
b. Develop a realistic 1-year operating budget (income & expense) and 3-5 year capital budget.
c. Involve responsible staff in development of operating and capital budgets.
d. Fund depreciation to ensure available cash for maintenance/replacement of capital assets.

Policies & Procedures

a. Effective Policies and Procedures, practiced consistently for the entire operation, protect resources.
b. Utilize sound risk management practices for staff, clients, and the public.
c. Develop systems of checks and balances.
d. Conduct on-going quality assessment/performance improvement activities.

Utilization of Resources

a. Document supplies usage and review periodically. Adjust expenses to variations in clients.
b. Implement a preventive maintenance system for building and equipment.
c. Limit overtime hours and contract staff services.
d. Manage contracts.
e. Conduct annual inventory and maintain records.

Purchasing

a. Limit purchasing authority to named individuals and limit such expenditures.
b. Standardize products.
c. Compare vendors for best value - may not be only purchase price.
d. Implement a system for purchase and receipt of items.

Financial Reports

a. Prepare detailed financial reports including current month, year-to-date, and last-year-to-date.
b. Include statistical data with financial reports, to include staff hours, client interactions, etc.
c. Share financial reports with responsible staff members.
d. Adjust financial expectations as necessary.

About the Author

Joan Bachman

Joan Bachman is a Registered Nurse, Licensed Nursing Home Administrator, Registered Health Information Technician, and Faith Community Nurse. She earned a Bachelor of Science degree in Business Administration. Joan has experience as a Nurse, Administrator, Developer, Trainer, Grant Writer, and served as Administrator of SD State Survey Agency. She has consulted with health care facilities and nonprofit organizations and presented leadership training. Joan is the author of Guidebook for Assisted Living Facilities and Senior Service Providers and Guidebook for Physician Services in the Nursing Facility, and she has published in professional journals.

Comments


Sylvia

I am looking for resources that break down the budgeting detail for AL operations. Do you have a suggestion or link to share? Who teaches new owners what the finances need to be for healthy budgeting ? What are the blogs or resources owners frequent? I can find tons of blogs for seniors on senior living but haven't found those that owners, investors go to. That's what I am seeking, too. Much thanks!

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