Sunday, April 27, 2008
Focus on the money part deux
There are quite a few nursing homes that like to limit supplies in a well-intended effort to contain costs. This practice is pound foolish and penny stupid. Not only does it decrease employee morale and directly affect resident care in a negative way, but it is a waste of time and energy that most administrators don't have to begin with. Assuming that with volume discounts, an incontinence brief will run you anywhere from about 30 to 50 cents each. Limiting how many briefs can be used per day will save you a dollar, maybe a buck fifty, per day per resident. Maximizing the RUG score by educating CNAs on their part and by ensuring that MDS nurses are credentialed will increase your revenue by a minimum of several dollars per day per resident. I'm not in any way saying you should try to defraud third party payors, but you should go to great lengths to make sure that your assessments are as accurate as possible. In short, go after the many big fish instead of concentrating on the few small fish that are out there in the sea of finance.