Nursing Home Accounting

Financial Challenges for Nursing Homes 

After the pandemic of COVID-19 hit, healthcare facilities struggled to make ends meet. Nursing homes specifically faced many challenges because of older residents and staffing shortages. Luckily, they have been on the uphill since, but still face day-to-day financial challenges within the economy. 

• Staffing Shortages: Nursing homes lost a lot of staff members after the pandemic hit. Though they are getting better, the turnover rates are higher than in other health field jobs. It can be challenging to hire new staff as training costs have increased. Many times, nursing homes will rely on temporary staffing, which can be expensive and isn’t long-term. 
• Rising Costs: The overall costs of operating a nursing home have risen. Increased costs of wages, supplies, maintenance, insurance, utilities, etc. all pose a greater financial burden. 
• Strained Cash Flow: Most residents will use insurance or Medicaid to cover the costs of being in a nursing home. However, Medicaid reimburses nursing homes at lower rates, making it hard to cover all the necessary funds. Delayed payments from insurance companies or Medicaid can cause a hiccup in the cash flow and ruin its stability. 
• Limited Funding For Renovations: Many nursing facilities are aging and need upgrades to keep up quality and value for the customer. This can include technology advancements, additional rooms, more equipment, etc. All of these renovations can be expensive and require more funding than is given. 
• Compliance Costs: Rules and regulations are constantly changing in this industry, especially after the pandemic. It is important to stay compliant with these regulations so you don’t have to pay costly fines and penalties. However, compliance, regulatory, and legal fees can be an expensive investment. 
• Decline in Residents: Because of aging facilities, newer facilities can attract more residents. There is high competition in the healthcare industry, meaning you could lose business to a competitor. Occupancy rates have dropped for nursing homes in general because of the risks posed by the pandemic as well. 

Our Services That Can Support Nursing Homes

Though you cannot stop these challenges from arising, you can best prepare your nursing home and its facilities by having exceptional accounting practices in place. At Cooper Norman, we offer services such as: 

Bookkeeping

We can take care of the recording of all your finances. This can consist of tracking income, expenses, purchases, sales, financial statements, payroll, etc. It is essential to get an overall picture of your financial health each period so you can make better business decisions for the future. 

Many businesses will do their own books internally, but this can be time-consuming, cause errors, and drag your focus away from your main business objectives. As a nursing home, you can spend more time building customer relationships, driving marketing initiatives, and taking care of the facility. We can then go over the report with you at the end of the period so you are aware of what’s going on and can make further improvements to reach company goals. 

BOIR 

BOIR, or Beneficial Ownership Information Report, is a fairly new report that was introduced under the Corporate Transparency Act. It is another form of protection to create transparency of business ownership and prevent financial crimes from happening. It is a decently complex process that can result in major fines if not followed correctly. 

Luckily, we understand who needs to file, the compliance regulations, and the information needed. We can help ensure it is done accurately and take the stress of an unfamiliar process off your shoulders. 

Taxes

Taxes are a tedious but crucial part of having a successful business. As a nursing home, there are many moving parts to consider for taxes. A tax professional can help you with tax planning, and tax filing, and help you understand what parts of your business can be deducted from your taxes. Working with a professional will make this process simple and seamless. 

Budgeting and Financial Planning

Budgeting and using that to financially plan for the future is crucial to grow your business. Budgeting can help you understand how much is being allocated to certain resources and make any improvements if needed. 

We can work with you to create a budget that aligns with your goals. We can also provide you with insights on future trends to look out for so you can make decisions accordingly. 

Medical Billing

Medical billing is essential for nursing homes. It ensures that all services are being billed correctly. We can assist you with registration, patient billing, insurance or Medicaid claims, reimbursements, and overdue payments. Having top-notch medical billing will drastically improve your company’s revenue cycle. 

Why Hire a CPA at Cooper Norman? 

Along with having expertise in all of the accounting services provided above, we value you and your business. Our CPAs understand the complex issues that nursing homes face and how to prepare for them. We want to help you achieve your goals and will do only our best to get you there. Going through a tough challenge? We will be there to help you. Experiencing a financial success? We will be there to celebrate with you and continue elevating that. 

Let us help you bring financial health back to your nursing home, so you can serve the people who need you with the most exceptional care. Contact us at Cooper Norman to level up your accounting practices today.