Maun-Lemke Speaking and Consulting was retained by a skilled nursing organization to enhance revenue. The year-long project involved six (6) of their nursing facilities (a collective total of 710 licensed beds). This Revenue Growth Initiative utilized our proven A.R.M.S. revenue enhancement process. The components of the A.R.M.S. process include:
- Building Teams to work on the Initiative
- A written and Team-signed 12-Week Plan with goals
- Weekly reporting on the process for continuous feedback to the Team on the effort
In addition, the Maun-Lemke consultants were available for live visits, phone conferences, Skype and email correspondence with the facility Teams during implementation of their 12-Week Plans.
The successful results of this Revenue Initiative are as follows:
- Medicare revenue grew from 13% in the 6 buildings to 20% (annualized)
- The Medicare rate went from $448/day average to $480/day average for the 6 buildings
- The average length of stay increased from 27 days to 36 days
- The 6-building annualized top line revenue increase was $9.2 million with an additional $1.5 million growth in Medicare rates
- Assuming a 30% profit margin on the Medicare top line revenue, that would equate to a total profit of $3 million on the $9 million top line plus $1.5 million in Medicare rate for a net profit of $4.5 million
In addition, there were substantial improvements in clinical systems, customer service, branding and positive marketing on a continuous and self-sustaining basis.