One of the most common ways to improve the cash flow of a nursing home is to ask vendors for 30-day payment terms.
Increasing the profitability of any business, especially nursing homes, can be challenging. Most strategies that increase profitability take time and resources, and they have uncertain payoffs. In this article, we review a simple way to increase the profitability of your SNF. It's a technique that can be easily implemented and improve your profits — if your company is the right candidate for it.
Nursing homes operate in a difficult environment where they face constant financial pressures. On the revenues side are payers who are always trying to negotiate lower prices and slower payments. On the expenses side are high debt payments coupled with supplier who want to raise prices, and so on.
Demand for nursing home services is strong and will increase, but operating a nursing home is extremely difficult, especially from a financial perspective. Keeping clear of financial problems - and staying in business - is challenging.