Management Performance Associates

Champaign County Nursing Home Urbana, Illinois

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 Business Office Management, 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