At not-for-profit senior dwelling organizations, the board of administrators performs a pivotal position in setting technique that helps the group’s mission, making certain monetary integrity and the efficient use of assets. Components reminiscent of altering shopper preferences, advances in expertise, inflationary pressures, workforce challenges and altering healthcare reimbursement and regulatory insurance policies can have main results on a corporation’s monetary well being.
There are 5 methods boards can keep forward of these points and drive organizational excellence with knowledgeable choices whereas enhancing their organizations’ long-term monetary sustainability and making certain that they’re well-positioned to supply high-quality care and providers.
1. Monitor future traits
Boards should concentrate on rising traits and looming obstacles to handle challenges earlier than they grow to be issues, they usually should capitalize on alternatives to adapt monetary methods, enlargement and repositioning approaches, threat administration protocols and compliance measures.
2. Assess the monetary stability of their underlying enterprise mannequin
To realize their core mission and function, boards must usually assess the sustainability of the packages and providers offered by their senior dwelling organizations. Boards ought to deploy applicable mechanisms to grasp and be routinely educated on the underlying enterprise mannequin and the drivers that would affect success, reminiscent of key monetary and operational metrics, utilization of providers, service choices, workforce issues, shopper preferences, and actual property and financial traits.
These components immediately have an effect on income streams and operational viability. Acquiring a complete understanding of these components and their results on the group’s underlying enterprise mannequin will serve to extend the probability that the group’s monetary place can be at ranges to stay sustainable and assist strategic initiatives.
3. Overcome workforce challenges with progressive options
Workforce challenges are anticipated to proceed to have an effect on senior dwelling organizations in lots of essential methods. To start, the rising demand for getting older providers will increase the pressure on the business’s workforce — a bunch that, in lots of cases, already is dealing with bodily and emotionally demanding duties, contributing to excessive turnover charges. Workforce shortages, completely excessive wage charges for sure staff and the necessity for specialised coaching in geriatric care aren’t serving to issues both.
To deal with these points, boards ought to encourage progressive workforce options, such because the deployment of strong and interesting coaching packages, adaptable recruitment and retention initiatives, and strategic workforce planning and scheduling.
These actions could assist mitigate worker turnover, decrease company utilization and guarantee a sustainable and high-quality care setting that helps organizations stand out as employers of alternative.
4. Implement a sensible progress technique
Senior dwelling boards should be certain that strategic progress objectives align with organizational objectives, monetary sustainability goals and normal compliance requirements. There isn’t a such factor as a “one dimension matches all” progress technique for senior dwelling organizations.
A deliberate method to strategic planning will guarantee the suitable technique for a corporation. Creating one of the best progress technique could be time-consuming, however it’s an funding that each group must make to make sure its long-term monetary viability and relevance within the market for future generations.
5. Strengthen strategic partnerships and affiliations
When senior dwelling organizations interact in strategic partnerships (no matter the kind of of partnership), boards ought to be certain that the association aligns with strategic intent and that administration has successfully evaluated the financial implications, stakeholder affect, regulatory concerns and general dangers, together with an intensive evaluation of the monetary well being of potential companions. Moreover, boards may also help be certain that administration groups set up a strong integration plan and reporting mechanisms to successfully monitor the progress and outcomes of the strategic partnership.
By utilizing an intense monetary and threat administration lens, senior dwelling boards can be certain that these collaborations align with organizational objectives.
Jennifer Schwalm is a principal with Baker Tilly and leads the agency’s senior providers consulting apply. Mark Ross is a principal with Baker Tilly and leads the agency’s healthcare supplier apply.
The opinions expressed in every McKnight’s Senior Dwelling visitor column are these of the creator and should not essentially these of McKnight’s Senior Dwelling.
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