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To everyone on behalf of Mike Rich:
We are all in for tough times with the CMS / Government cuts to our funding coming this October….I want to thank all of those who tried to prevent these excessive Medicare cuts, but unfortunately we lost the battle. Due to the cuts, we are going to have to institute some counter measures as the “parity adjustment” means a $8-9 million loss of revenue to Daybreak based on some historically data/ models we have run. This loss of revenue almost wipes out our entire profit and eliminates entirely our ability to do the “extra things” we have tried to put in place. Your senior management team, along with your Directors/ Officers/ Owners are strategizing how to make up some of these shortfalls in cash. We have decided that step one will be to freeze all wages effective September 1st until such time we can truly ascertain the impact of CMS’s actions.
Coupled with the CMS cuts have been the continued deterioration in census, (mostly with our Medicare A residents) and the increase in Accounts Receivable ( poor collections)….thus we have a triple threat heading our way and if not corrected soon could prove to be too much for us to handle without significant reductions in staffing/ benefits and wages. Please meet as teams with department heads to discuss/ implement and share your own strategies that can help turn things around…one area that haunts our group more than most is not capturing the reimbursement owed to us if nursing (ADL etc….) was done more accurately. IF YOU FEEL THERE ARE AREAS WE CAN CUT PLEASE DO SO….NO NEED TO WAIT FOR OCTOBER!!! Work with your RDO’s to determine where to make cuts in spending…
Michael Rich
President
Daybreak Venture, LLC
Office: 940-387-4388
Cell: 817-688-7413
Fax: 940-380-2437 |