Profit margins for senior living providers who serve Medicaid and low income individuals are razor thin. Without a solid financial plan, an effective budget, and timely response to operational and industry changes, a senior living facility will struggle to survive.
The first step in the financial planning process is to determine the strategic and financial goals for your facility. When determining your financial goals, it is important to keep in mind short- and long-term strategic objectives as well as more immediate concerns such as debt covenants, which often include minimum levels for the debt service coverage ratio and days cash on hand.
Continue reading to learn how to build a solid financial plan, an effective budget, and respond appropriately to operational and industry changes for your senior living organization.
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