Urbana, Illinois
Government, division of Champaign County
243-bed skilled nursing facility, replaced in 2007
Fixed price, heavily regulated environment
Affiliations: None

Background

Aging facility had been replaced on a bed-for-bed basis, resulting in likely excess capacity. Operating performance poor and worsening. County subsidizing with little evidence that repayment was possible. Over-capacity in the local market along with shortage of registered nurses. Aggressive labor union; difficult management environment. Census declining and losses mounting. Nursing home directed to make it on its own—no more funding available from County.

Results Under MPA Leadership

• MPA starts July 2008; increased census levels and improved mix within first year
• Fiscal 2008 lost $1.8 million
  
• Fiscal 2009 loss reduced to $150,000
  
• Fiscal 2010 profitable with nursing home meeting its financial obligations
  

Key Moves

• Instituted strict expense controls and better revenue management
• Streamlined operations; improved financial reporting
• Developed supervision and human resources skills
• Broadened revenue base
• Instituted economy of scale via shared financial reporting, saving 40 percent annually

Leadership Strategy

• Redefined governance
• Changed strategic direction and operating assumptions for improved performance
• Committed to building a stronger workforce
• Focused on customer service organization-wide
• Emphasized management development and staff training