Located on 11 acres in a suburb of Minneapolis, Saint Therese of New Hope is a welcoming senior living community offering a full continuum of care. They offer a variety of senior apartments and assisted living units and a mix of independent living, assisted living, memory care, and home health care services in a thoughtful, compassionate environment.
St. Therese of New Hope
Fresh eyes pinpoint ways to improve bottom line
Operationally, St. Therese had a positive cash flow, but intuitively, the CEO and CFO knew that some service offerings may be negatively impacting the results. Plante Moran Living Forward™ (PMLF) used its revenue optimization tool, Price Point, to help identify which of St. Therese’s products and services were upside down from a cost and revenue standpoint.
The objective of the Price Point analysis was to confirm that the pricing and fees collected for the rent and service packages offered to residents were commensurate with the costs of providing the care. The Price Point exercise gives owners and operators the information necessary to realign revenue and expenses based on real-time data and information.
PMLF’s team analyzed the facility’s operational overhead and service expenses and compared them to the revenue generated on resident rent and services. The team found that St. Therese’s assisted living program was not adequately priced, both for the base package of rent and services as well as a la carte services. PMLF identified losses associated with the nurse-provided medication management and administration, escorting, and laundry services. The PMLF team recommended solutions for recapturing that lost revenue, and now St. Therese’s leaders are implementing those solutions to realize savings.
Plante Moran Living Forward stepped us through a comprehensive review of our operations using their Price Point analysis, which provided us with a fresh and detailed review of our cost structure. Living Forward’s team was able to use the information generated to pin-point specific areas of loss and recommend revenue-enhancing strategies to improve our bottom line. – Barbara Rode, CEO & Mike Warden, CFO
Get in touch to get the ball rolling
Get in touch with us and we can provide you with more information or a no-cost initial consultation. We strive to help save you time and money while increasing the value of your next project.