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 County government facing replacement of badly outdated 194-bed skilled nursing facility.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

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