7 Numbers Handout and slides will be available at - - PDF document
Preliminary Stuff 7 Numbers Handout and slides will be available at YourCaringHouse.org/OHN2018 YOU Need to Know Time Presented by Edward W. Long, JD, Questions Caring House Omega Home Network conference June 2018 Home Age
YourCaringHouse.org/OHN2018
Open 10+ Years Just Getting Started Will Open Soon Open Under 6 Months
Business of Keeping the Home Open Care and Support for Residents
fail (82%)
Total up all cash needs of your home for the year including
Cash Needs Alpha House Beta House Direct operations $240,000 $480,000 Administrative and general $30,000 $60,000 Fundraising $30,000 $60,000 Capital additions and replacements $20,000 $20,000 Building prudent reserves $40,000 $80,000 Funds for growth (home #2) $50,000 Total $360,000 $750,000
good job of projecting our annual cash needs for
to a prudent level.
Available cash (excludes debts due within 12 months and restricted cash can’t spend within 12 months) Divided by Average monthly cash need (annual cash needs [see #1] divided by 12)
Alpha House Beta House A Available cash $70,000 $200,000 B Annual cash need $360,000 $750,000 C Divide by 12 for Average monthly need $30,000 $62,500 D Cash coverage ratio (A divided by C) 2.33 3.2
the board).
in more money or you need to reduce cash
residents during the year
Resident Days (from #3) Divided by 365 days times number of bedrooms in the house (maximum possible number of resident days)
Alpha House Beta House A Resident Days (see #3) 876 1,533 B Number of bedrooms in the house 3 6 C Days in the year 365 365 D Maximum possible number of resident days 1,095 2,190 E Occupancy Rate (A divided by D) 80% 70%
Day (#5)
ramp up our occupancy so that we’d reach a 70%
year.
70% in a month.
You need to know and be able to tell donors and residents/families what it costs to serve a resident.
resident/family contributions to help pay costs of care
Annual cash needs (#1) Divided by Resident Days (#3)
Annual Cash Needs (#2) Resident Days Occupancy Rate Cost per Resident per Day A $360,000 986 90% $365 B $360,000 876 80% $411 C $360,000 767 70% $469 D $360,000 657 60% $548 E $360,000 548 50% $656 F $360,000 438 40% $822 G $360,000 329 30% $1,094
Annual Cash Needs (#2) Resident Days Occupancy Rate Cost per Resident per Day A $750,000 1,971 90% $381 B $750,000 1,752 80% $428 C $750,000 1,533 70% $489 D $750,000 1,314 60% $571 E $750,000 1,095 50% $685 F $750,000 876 40% $857 G $750,000 657 30% $1,141
estimated our Occupancy Rate and under- estimated our cash needs, so we told donors and residents/families a Cost per Resident per Day that was about 50% of actual.
costs.
Total up
paid by employer
Don’t forget overtime rules
Alpha House Payroll Beta House Payroll Outside Agency A Basic hourly rate $12.00 $12.00 B Taxes, etc. (9%) 1.08 1.08 C Workers compensation insurance (12%) 1.44 1.44 D Contribution to employee health insurance (7%) 0.84 E Total hourly rate $14.52 $15.36 $20 - $25??
from a staffing agency
Compensation rate was over 20% -- a big surprise
serve.
from
1. Higher end of range if Omega Homes concept new 2. Higher end of range if population is younger than average (see Population Bonus in Handout)
needed to serve that population
Tulsa, OK: City = 403,505; Metropolitan Area = 981,005; Metropolitan Statistical Area = 1,151,172
Area 1 Area 2 Area 3 Area 4 Area 5 A Population 150,000 300,000 500,000 750,000 1,100,000 B Divided by 35,000 35,000 35,000 35,000 35,000 C Result 4.3 8.6 14.3 21.4 31.4 D Subtract: Existing 2 5 22 E Needed now 2.3 8.6 9.3 21.4 9.4
existing home
Los Angeles County, CA
bedrooms are needed in our area (we have 5 bedrooms)
for your home
Numbers Geek some love
available at YourCaringHouse.org/OHN2018