DeKalb, Illinois
Government, division of DeKalb County
194-bed skilled nursing facility
Fixed Price, Heavily Regulated Environment
Affiliations: None

Background

Growing community west of Chicago. Occupancy high. Excellent reputation for quality of service. County government facing replacement of badly outdated 194-bed skilled nursing facility. County heavily subsidizing operations (up to $700k per year). County willing to replace facility if profitability determined to be feasible.

Results Under MPA Leadership

• After 5 years, consistently profitable from operations; reserves at $4.4 million (Additional depreciation and interest expense totaling $756k added with commencement of operations at new facility in March, 2000.)
• No County subsidies since 1997 when MPA assumed management County able to continue its mission as a safety net provider

Key Moves

• Prepared Business Plan for new facility indicating profitability. Assumed role as Interim Manager
• Eliminated unfunded liability of $1.4 million to the Hill-Burton Program.
• Retained MPA as Permanent Manager
• Financial accountabilities established; operating targets set; management staff trained and re-formed

Leadership Strategy

• Restructured facility governance, moving away from a politically appointed committee to an Operating Board independent of political influence
• Re-organized management staff and fixed responsibilities and accountabilities
• Emphasized development of Medicare rehabilitation program as a feeder of private pay residents