Tuesday, December 15, 2009

Mailing Lists, Labels, and Letters

This is the time of year to send out seasonal greeting, and maybe information on your foundation, or a monthly newsletter.

PALs makes it easy to print mailing labels, for any addresses entered. For example, Residents' contacts, physicians, pharmacies, and staff, all permit printing of labels, letters, or even emails.

Download a FREE trial of PALs Executive today and take a look. www.PALsSoftware.com

Sunday, December 13, 2009

Assisted Living Pricing & Profits

Assisted Living operations usually categorize income into three streams: Housing, Food, and Services. This discussion is meant to address Services (the heart of assisted living).

In summary, management is buying staff time at an hourly rate, then adding value (training, supervision, setting, etc.) and reselling staff time in 15 minutes units for resident cares. Hopefully, if you use monthly package pricing, the packages are based on minute of care.

So if you price your 15 minute of service to include:

1. wage related expenses including taxes and benefits (fully-loaded).
2. Administrative Overhead to include supervision, training, etc.
3. ROI - Return on Investment to convert staff time to a profit center!
4. Shift Productivity = Resident Service Hours divided by shift hour. So if a shift is 8 hours long, and includes 6 hours of direct resident care, 6/8 = .75 (75%) shift productivity. Hence, 100% - 75% = 25% non-productivity factor. The .25 is used in the following calculations. This step ensures that the full 8 hour shift is paid.

Plugging in the numbers; if your fully-loaded wage related costs are $14.00 per hour then:

$3.50 per 15 minutes ($14.00/4)
+0.88 (3.50 x .25 = 100% - 75% = 25% shift non-productivity factor)
+1.53 = 4.38 x .35 (admin overhead, 15% + ROI, 20% = 35%)
$5.91 = price per 15 minutes of service

Once you set your shift productivity by policy, and create your staff work schedule accordingly, your service side of the business is on track to create profits. Staff scheduling becomes the critical focus that needs to be managed and measured each week.

PALs includes templates to do the above calculations, and reports to review the shift productivity and resident service plan profitability.

Visit PALs Software website and download a FREE 7 day trial and calculate your price points.