How do you improve profits in your care home?
RPGCC has built an organic specialism in the care home sector over a period of several years. As a result we now have a team that specialises in advising the care home and nursing home sector. Whether this be with day to day accounting, payroll, bookkeeping, VAT, mergers and acquisitions, investment or selling a care home business our team can help.
We find that in the care home sector there is one question that is asked more than others, and that is, how can you improve profits in your care home? Of course, in the care home sector no owner wants to compromise care or service in order to increase profits, but if you enhance your service even further the increase in profits will follow.
So, in answer to the question “How do you improve profits in your care home?” The answer is always the same, it’s in that the service you provide, this is everything. If your residents are happy, their families are happy, they then recommend your care home and more people want a place, leading to higher occupancy levels.
Reduce agency costs
Focus constantly on trying to take agency cost out of the business. Agency staff are more expensive than full time staff and, given they are typically brought in to cover temporary gaps in your staffing needs, they may not have the time to ‘buy-in’ to your service focused culture
Create a home wide culture of excellence
Service is everything – this home wide mindset starts with the owner setting the tone and establishing the right culture. Staff must be trained to see residents as guests and understand the importance of projecting a positive, happy image from the moment a potential new resident rings/emails with an enquiry
Response to emails/calls promptly
Good service starts with how you deal with new resident enquiries – train staff to get back to enquiries within a specific short time frame. This early positive experience can mean the difference between gaining a new resident or them choosing to go elsewhere
Empower your staff
The positive experience approach should flow through all aspects of resident care. A happy home leads to happy residents, but also happy staff, who are more likely to commit to working at your home for a long time. This is key to solving a costly agency staff requirement. Think how you can create a culture where residents and staff want to stay with you.
Track care home review websites
Carehome.co.uk is the largest and its reviews and others like it can make or break how successful your home is. Monitor what is said about your home and, equally important, read what is said about homes with reviews you aspire to and think about changes that will give your customers the same experience.
In general, focus on 2 key areas – great service levels throughout the customer/resident contact points and a create a culture where staff feel valued and commit long term.
Get these elements right and you will be rewarded with higher occupancy levels, lower agency costs and growing profits.
With greater demand for your beds and high review scores you can charge higher fees and generate cash to invest in your home and potentially allow you to acquire other homes.
RPGCC Corporate Finance are specialists in the healthcare sector and have advised on over 20 care home transactions in recent years. If you would like to discuss how you make your care home more profitable or if you would like to discuss any area of care home investment, sale or acquisition please contact Matthew Burns at firstname.lastname@example.org.