We at OnShift are seeing a variety of reactions in long-term care and senior living to the Medicare cuts that hit October 1st. Some are in panic mode, fearful they’ll have to shut their doors because the cuts will so severely impact their bottom lines. Others are focusing on their strategies, from resident care and intakes to cutting costs and driving operational efficiencies. And it’s business as usual for those who don’t rely on Medicare payments, although perhaps with more focus on optimizing their organizations and controlling costs.
With different perspectives and strategies in play across the industry, there is a common thread that can and will help all organizations thrive during these challenging times. Focusing on your largest expense – labor – will drive cost savings and efficiencies with just a few tweaks and modifications to your day-to-day staffing. Give your labor management strategy a good, hard look for areas you can improve. Got overtime? Reduce it. Using a staffing agency? Eliminate it. Running above your labor budget? Optimize it.
If you have any overtime at all, now is the time to look for ways to reduce it. You’d be surprised how much just a 1% reduction to your overtime rate can save your organization! Curious? Find out by reading Mark Woodka’s article in Long-Term Living, A Manager’s Guide to Labor Cost Management. You’ll pick up strategies, advice and next steps that will not only help your organization save money, but run more efficiently, more profitably, and with even higher quality care. That’s a remedy for any organization in today’s challenging times, no matter how big a toll the Medicare cuts may, or may not, take on your homes.