"Creating Community, Nourishing Souls

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Table of Contents
1.0 Executive Summary.............................................................................................................................1 1.1 Objectives ...................................................................................................................................2 1.2 Mission........................................................................................................................................2 1.3 Keys to Success ........................................................................................................................2 Chart: Highlights ......................................................................................................................3 2.0 Organization Summary .......................................................................................................................3 2.1 What Makes Bright House Unique ...........................................................................................3 2.2 Legal Entity .................................................................................................................................4 2.3 Start-up Summary ......................................................................................................................4 Chart: Start-up .........................................................................................................................5 Table: Start-up .........................................................................................................................6 Table: Start-up Funding ..........................................................................................................7 2.4 Locations and Facilities ............................................................................................................7 3.0 Services................................................................................................................................................8 3.1 Service Description ...................................................................................................................8 3.2 Alternative Providers .................................................................................................................8 3.3 Printed Collaterals .....................................................................................................................9 3.4 Technology..................................................................................................................................9 3.5 Future Services ..........................................................................................................................9 4.0 Market Analysis Summary................................................................................................................10 Chart: Market Analysis (Pie)................................................................................................11 Table: Market Analysis .........................................................................................................11 4.1 Market Segmentation..............................................................................................................11 4.2 Target Market Segment Strategy...........................................................................................11 4.2.1 Market Trends .............................................................................................................12 4.2.2 Market Needs ..............................................................................................................12 4.3 Service Providers Analysis.....................................................................................................13 4.3.1 Organization Participants...........................................................................................13 4.3.2 Alternatives and Usage Patterns...............................................................................13 4.3.3 Main Alternatives.........................................................................................................14 5.0 Management Summary ....................................................................................................................14 5.1 Management Team Gaps .......................................................................................................15 5.2 Caregiving Organizational Chart............................................................................................15 5.3 Personnel Plan.........................................................................................................................16 Table: Personnel ...................................................................................................................17 6.0 Strategy and Implementation Summary..........................................................................................17 Chart: Milestones ..................................................................................................................18 Table: Milestones..................................................................................................................18 7.0 Financial Plan ....................................................................................................................................19 7.1 Important Assumptions............................................................................................................19 7.2 Key Financial Indicators ..........................................................................................................19 Table: Funding Forecast ......................................................................................................20 Chart: Funding Monthly.........................................................................................................20 Chart: Funding by Year.........................................................................................................21 7.3 Projected Surplus or Deficit....................................................................................................22 Chart: Surplus Monthly..........................................................................................................22 Chart: Gross Surplus Yearly.................................................................................................22
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........27 7..........................................28 Table: Funding Forecast .........................27 Table: Ratios .......................................23 7.........................................................................................................................................................................Table of Contents Table: Surplus and Deficit....................5 Projected Cash Flow...........................................................................5 Table: Balance Sheet ................24 Chart: Break-even Analysis ...........................................................7 Standard Ratios ...........................................6 Projected Balance Sheet ................4 Break-even Analysis....................................................................24 7..........................................................................................................................................................................................23 Table: Break-even Analysis ...................................2 Table: Surplus and Deficit .6 Page 2 .3 Table: Cash Flow ...............................................................................27 Table: Balance Sheet .....................................................................................................................................................................................................................................................................................26 7...............................................24 Table: Cash Flow...........................................................................................................................................................................................25 Chart: Cash ...........................................................................................................................................................................................................................................................................1 Table: Personnel .................................................................................................................................................................................................

and offering skilled nursing care for short-term residents. On our beautiful. with ideas. Bright House aims to be that home for 14 lucky full-time assisted living residents.0 Executive Summary Where would you want to live if you needed daily assistance? In your home. In our first five years.Bright House 1. offering medicallyskilled care in a respectful. we will establish a new kind of Elder Care model based on the idea that the elderly are fully-realized persons. newly remodeled 6 acre property (the former Wayfield Bed and Breakfast) in the small college town of Middletown. CT. and experiences which matter. of course. alternative visions of the potential in our elderly family members' latest years. Can you help us to realize this goal? Page 1 . self-sustaining community. thoughts. Bright House brings together dec ades of experience and innovative.

but also allow them a spac e to make a difference in the world around them. To provide adequate training. To fill all of the rooms in the main house over the course of six months. and maintain it at 9 to 10 rooms oc cupied for 25 days per month thereafter. Our fair wages and team structure lower dissatisfac tion. ac cess to all areas of their homes here at Bright House. non-financial objectives as well: · To provide a warm. through caring and expert assistance to our community's most vulnerable members. home-model care than our competitors. Ongoing feedback through the resident House Councils will give us a weekly update on our progress. and expert opinions of our staff.3 Keys to Success We have identified four keys to success for Bright House: · · · · We offer more resident-oriented. structured work schedules. 1.2 Mission At Bright House. We do not expec t staff to do work for which they are not trained. safe and engaging home for up to 14 permanent residents. and clear duties and spheres of rights and responsibilities for eac h team member. small-scale. comfortable. We are committed to providing fair and living wages. Our on-site Skilled Nursing Fac ility ensures continuity of care when our residents need Page 2 . and food preferences.1 Objectives For our first year. and strive to give them excellent quality of life. To provide skilled medical care in a similarly respectful atmosphere to our temporary Medicare residents. · · 1. Begin development implementation for the ongoing funding needs of years two through five. we have four financial objectives: · · · · To raise adequate funding for start-up. and self-determination in activities. We also value the time. reasonable. skills. Our innovative use of Elder Assistants lowers the cost of providing this care considerably. We aim to provide jobs which not only provide sustenance for our workers' families. To that end.Bright House 1. we promote the dignity and self-worth of all of our residents. mentoring and recompense to our caregiving staff to create job satisfac tion. Bright House is not just a caregiving fac ility—it is their home. as defined by the residents. and thus turnover rates among our staff. soc ialization. we encourage resident group dec ision-making through the House Councils. we do expec t them to share their suggestions for improving any aspec t of Bright House working operations or caregiving. We have other. To open the Skilled Nursing Fac ility. and their community. individually and as a group.

Doc tor Mildred Johnson. easily quantifiable lists of proc edures and Page 3 . Our Financial operations will be overseen by Madeleine Morgan. Our primary loc ation is the old Wayfield Bed and Breakfast.S. is one of the most respec ted gerontologists in New England. our contrac ted Nutritionist will visit the retreat to give cooking lessons and to review individual residents' dietary needs. attac hed. M. She will be supported by a full-time Medicare Liaison/Billing Specialist. The entire staff will meet with our Board of Directors three times a year to assess the staffing and other needs of the fac ility. of New Haven.. and cleaning. 2.) Our Medical Director. and a part-time Development Officer. with the goal of providing holistic and respectful assisted living and skilled nursing home care to a small group of elderly residents. M. CT.W. Once a month.1 What Makes Bright House Unique Although the hospital model of care prac ticed in most nursing homes provides good results for Medicaid and Medicare billing purposes—that is. She will be supported by four licensed prac tical nurses. who has managed nonprofit funding and payroll departments for 27 years (see attac hed resume).0 Organization Summary Bright House is chartered as a nonprofit 501(C)(3) corporation in Middletown. who will perform all non-clinical duties such as daily assistance.D.Bright House more intensive assistance. laundry. (See architectural drawing. 2. on Farmer's Road.. and six Elder Assistants. cooking. which we have spent the last five months converting into a two building nursing home fac ility in line with Eden Alternatives "Greenhouse" model for enlightened elder living.

Ac knowledging that where they live is their home.Bright House medicines administered. 2. not to the medical staff. CT. In addition to the obvious benefit of allowing multiple care-team members to easily exchange information as they change shifts. and emotional well-being. and dining room. and belongs to them. Board of Directors · · President: Dr. John Leader. and billable nursing hours—it does not provide good quality of life for residents (or "patients. Studies have shown over and over that seniors who are engaged in activities they find meaningful are far more likely to retain mental ac uity..3 Start-up Summary Start-up Expenses One of the largest items in our Start-up budget is a computerized medical records system.D. with little or no input from "patients. The loc ation was willed to us by Evelyn and Jack Bright last February. Susie Social-Worker. Far more devastating than physical illness to our elders. M. monitor gradual but serious changes in c ondition which might be overlooked in dayto-day interac tions." and bec ome just one more set of required tasks for all involved. and corroborate quantifiable medical data for our Medicare patients in the skilled nursing fac ility. 2. Preliminary designs of this system have already been c onstructed by DigInfoMedTel. individual dignity. currently assessed at $400. we have established a fac ility that not only meets their medical and physical needs. is lac k of purpose. Start-up Assets Current (Short-term) Assets include $6. and personal preferences. M. At Bright House. Long-term assets include our existing loc ation. where all meals are shared communally at our 15 foot farm-style dining table.P. Each resident has a private room with bath. Michael Medical.000 of start-up inventory (bedding. we have already begun working with prospec tive residents to identify areas of interest and methods of community involvement that will appeal to them. its "ac tivities" are usually organized by staff. cleaning and disposable medical supplies) and non-expensed. test results.000 including renovations. the former Wayfield Bed and Breakfast.H. At Bright House. smaller medical equipment that will depreciate quickly." as they are referred to in the hospital model). with the condition that we include a small Medicare fac ility as part Page 4 . living room. but one that also nourishes their social connections. this system will allow our residents and staff to keep trac k of chronic conditions. physical health. and will need to be replac ed in year four or five. Its Board of Directors is drawn from the loc al medical and community-organization communities. Although the hospital model tries to provide such stimulation. Members: Laurie Law. we see a different way of assisting our elderly members through a new stage in their lives. opening onto a central shared common area containing the kitchen.2 Legal Entity Bright House is chartered as a nonprofit 501(C)(3) corporation in Middletown.

and comfortable surroundings to our residents in their new homes.000) of the Bright House property in the "donations collected" category to ac curately reflect our assets. and $150. after the renovation.500. This budget will allow us to provide attrac tive.650 by January 1st to begin operations. Page 5 . at the minimum. a dresser. functional. self-lifting recliners.000 for initial furnishings. resalable) medical equipment. we have secured a low-interest loan for $210.000 per room. Each bedroom in the main building will have enough remaining space that residents can bring plenty of familiar furniture with them (up to two side tables and wingbac k/ reclining chairs.000 for furnishing the four common rooms.) Call-button system Furnishings: For the common areas of both buildings. Medical Equipment: · · · 1 Fully-loaded Crash Cart Standard monitoring equipment (blood pressure. With the remaining funding. and a second dressing table or its equivalent). etc. linens. that leaves just over $6. sugar. tables. Funding To fund these start-up costs.Bright House of the overall plan. and chairs suitable to our residents' needs. We have alloc ated $35. We have also included the value ($400.000 for (long-term. we will need couches. and a phone.000. We must raise an additional $7. and have collected donations and pledges in the amount of $291. This category includes new Long-term Assets needed as follows: $200. Each private room will need a hospital-capable bed.

000 $914. Advertising Insurance Computerized Medical Records System Expensed Medical Equipment Staff Training Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements $500 $200 $2.000 $750.000 $20.000 $49.450 $8.000 $865.000 $5.150 $78.150 Page 6 .000 $6.Bright House Table: Start-up Start-up Requirements Start-up Expenses Legal Stationery etc.000 $31.000 $13.

000 $210.150 $865. holding up to 14 residents.000 $78.4 Locations and Facilities We have now nearly completed the five-month renovation of the former Wayfield Bed and Breakfast into our two main fac ilities.Bright House Table: Start-up Funding Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets $49.000 $0 $0 $215.150 ($49.000 Total Capital and Liabilities Total Funding $865.500 $0 $7. We have two larger rooms that can ac commodate married couples who move in at the same time. Each room is wheelchair ac cessible. for a total of 12 rooms.000 $0 $78.650 $699. and can ac commodate maintenance mac hines such as oxygen.150) $650.000 Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Donations Collected Donations Pledged Needed Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital $597. dining room.000 $5.000 $94. opening onto a central social area containing the living room. The main building will house our privately insured. Page 7 .000 $914. The skilled nursing fac ility ac ross the courtyard offers more intensive care for post-operative and recovering temporary residents.000 $865. and kitchen. as well as providing a setting for increased care for our residents as needed.150 $787.000 $914.150 2. assisted-living residents. Each resident in our assisted living retreat will have a private bedroom and bath.

air grievances. and is the only area of the fac ilities which will house residents receiving Medicare or Medicaid payments. and quality of care ensures that our residents will remain in the best possible surroundings when their needs are greatest. Skilled Nursing Care For residents or temporary residents with more demanding health or care situations.2 Alternative Providers The many fac ilities in our area serving this population offer only hospital-model care fac ilities. we expec t them to keep us informed of their health. This part of Bright House has two purposes: as a short-term rehabilitation center for community members recovering from surgery or medical emergencies.3 . 3. plan ac tivities. shared in c ommunity with other residents. administered by our nursing staff. 3. social contac t. under Topic 4. and overseen by our Medical Director. so that we can best assist them. where we are situated.0 Services We offer two services: Assisted Living and Skilled Nursing Care. and clean. including physically non-demanding ac tivities in the Bright House garden.1 Service Description Assisted Living Our residents in the main building can expec t respec tful and caring assistance as they go about the daily ac tivities of their own c hoice—not those of an Ac tivity Director. cook all meals (with optional resident assistance). They will be encouraged to take part in Bright House soc ial life. or nursing home staff. their enthusiasms. The Elder Assistants. who come together to socialize. 3. Middletown. and to plan outings whenever and wherever they choose. and share their knowledge and wisdom with eac h other and all who choose to visit them. our Skilled Nursing Care Fac ility offers a more closely supervised and assisted lifestyle on the same property—right ac ross the courtyard. is centrally loc ated 25 minutes from Hartford. and as a full-service nursing fac ility for residents who can no longer take care of their own needs sufficiently in the main building. will also do their laundry. Middletown is a small college town. In return. and 30 minutes from New Haven. in addition to providing personal care. with an ethnically and economically-varied population. Residents staying in our Skilled Nursing Care Fac ility will receive any nec essary medications on the sc hedule determined when they enter the fac ility. who perform for our skilled nursing residents many of the same services they do for our Assisted Living Residents.Service Providers Page 8 . Their strengths and weaknesses are described below. to speed their recovery and improve their sense of connection. The continuity of loc ation. Our residents are welcome to have visitors at any time between 7am and 9pm. These residents can expec t that their new home will be just that—their own home. their concerns. We will begin providing services in January of next year. Our two full-time and two part-time Licensed Prac tical Nurses (LPNs) are joined by the full-time Elder Assistants.Bright House The skilled nursing fac ility to the left of the main building can house up to eleven adults. and their whereabouts.

1) describes the services offered and includes "before" and (envisioned) "after" pictures of the Bed and Breakfast-turned-Elder Home. with our residents and staff established. and the knowledge that outside of in-home. with a more satisfied and team-oriented staff. We envision using these initial years to gain the experience and teamwork nec essary for Page 9 . to fishing. to bring donors and potential residents and their families up-to-date on our progress during the first year. We will hold a series of HIPAA trainings with the software in mid-December to ensure that our staff is fully-knowledgeable in this area. Johnson's colleagues. to cooking. the main use of technology at Bright House will be the installation and use of our computerized medical record system. to electrical design (to name just a few of the many skills our current group of prospec tive residents have to offer). we plan to explore potential connections with loc al alternative sc hools. who have expressed an interest in bi-monthly 'heritage trips. The loc al population in this affluent state could support dozens of Elder Care Homes such as ours. and how to maintain their health. their loved ones are receiving the best possible daily assistance in maintaining their preferred lifestyle. but still medically-qualified. full-time care. above) are numerous.Bright House Analysis. The system will also allow residents to ac cess their own individual records with a password at will. In the second year.' for their students to take lessons in areas of our residents' expertise. Johnson's resume' and mission statement. Dr. we offer peace of mind. We are working carefully with DigInfoMedTel to ensure that all of our technology meets Health Insurance Portability and Ac countability Ac t (HIPAA) standards before implementation. we offer a more humane. alternative to the drab prospec ts of a standard nursing home. we would also like to find ways to reduce resident monthly costs to make such c are available to families with more modest incomes. in a particular stage of their life's journey. For our Medicare residents. 3. on a firm financial footing. from gardening. For our privately insured residents. And for their families. Our fundraising pac ket (attac hed.4 Technology In addition to our advanced medical equipment. we offer respectful and nurturing care. viewing the resident as a whole person. After our first five years. and testimonials from prospec tive residents and Dr. 3. to ensure that they understand as much as they can about their own situation.5 Future Services We hope that Bright House bec omes a model for alternative Elder Care in our area. The benefits of this system (described in the Start-up Summary. Our nonprofit status and our alternative care model allow us to offer more residentoriented services at a better price. Both of these will be reworked in June of next year. than these fac ilities can. 2) includes the broc hure.3 Printed Collaterals Our broc hure (attac hed. 3.

000 2000 461.Bright House establishing the best caregiver/resident proportion. we get 40% of the population. Of these. Base Numbers for private residents: The current total population of residents 65 and older. and we are situated at their juncture). is 155.676. before rising again. To project into the future. or 60. We then reduce that number again by half to get the total potential customers living within a 35 minute drive of Middletown (these are small counties. This leaves us with roughly 12.5% will have the means ($150.000 2005 456. such as Glastonbury. Medicare residents and short stays: A study published recently in the journal Health Affairs by Morrissey.S. we estimate roughly 8.* rather than just the highest brac ket.906 nearby upper-income residents of Hartford and Middlesex County who are 65 or older.000 2025 671. and in need of medical or other daily assistance in their living situation. We therefore include a modest projected increase in potential customers of 1% over the next five years. they are traditionally less likely to seek out alternative care. the current system preferentially delegates recovery care to private nonhospital fac ilities. Although residents with lower incomes may have a need for our service. ac cording to the 2000 U. Page 10 . and Valvona found that the proportion of Medicare patients transferred to post-hospital care has doubled since the Prospec tive Payment System (PPS) was introduced. Sloan.838. or with family members able to care for them. leaving us with a total potential market of 303. The Census' Projected Population of Connecticut is as follows: 1995 467.4% of the overall Connecticut population.) Our projections reduce that number by 70% to ac count for those healthy enough to care for themselves. are within a short drive of our fac ility.071 in Middlesex County.735. leaving us with 151. below. Census. We base our projections for Medicare residents on the same figures listed above. 4.000 2015 526. affluent portions of which. but looking at the percentage of elderly with family incomes between $30.0 Market Analysis Summary We are basing our Market Analysis on data from Middlesex and Hartford counties. Rather than staying in the hospital until recuperated.000 While the overall population of Connecticut is projected to dec line over the next five years. We apply the same conservative 1% growth rate. and 857. (The percentage of elderly in both c ounties is slightly higher than the 12. we again looked to the 2000 Census. leaving room in hospitals for urgent or crisis care.000 or more family income) to pay for full-time private care at our fac ility (based on the 2000 census data about Connecticut income). we know that the proportion of the overall population age 75 and older (our target market age) is slowly rising. *This income range was chosen because it correlates with the kind of higher education levels that most families choosing non-hospital model skilled nursing care report.000 dollars.183 for the same group in nearby Hartford County.000 and $75.

165 61.906 60. who value community and the contributions of their peers. and learn from and teac h eac h other. We also recognize that we must meet the somewhat different needs of our residents' families.955 0 75.342 0 74.00% 1. who may or may not have similar needs. our marketing strategies rely on another level of breakdown—marketing to potential residents.641 Year 2 13.430 63.377 Year 3 13.00% 4. 4. or recuperate here. and marketing to the families of potential residents.00% 0.1 Market Segmentation Although we have broken our target population into two groups based on income.2 Target Market Segment Strategy The overall populations we wish to serve are older people (65 and older). we espec ially are seeking residents willing to make this house a home.631 CAGR 1.575 0 75.872 Year 5 13.735 0 73. and who will almost certainly be contributing to the monthly payments nec essary to provide for their care.035 61. Since Bright House will bec ome their home.Bright House Table: Market Analysis Market Analysis Year 1 Potential Customers Privately-paying Full-time Residents Medicare Patients Other Total Growth 1% 1% 0% 1. Page 11 .120 Year 4 13. in need of daily assistance.297 62.00% 1.201 0 76.00% 12. who will help them make the dec ision to live with us.

reflects an issue emanating from structural lag. More and more of this population. is that people seeking assisted living care and skilled nursing care have many of the same needs: · · · · To be To be To be To be team treated with respect and dignity ac tively engaged in a community of some kind involved in his/her own treatment and living plan cared for by skilled.2 Market Needs The aging of the Baby Boomers is a well-known and much disc ussed fac t of our times.1 Market Trends “In the old days. medically-knowledgeable clinicians and caregivers.. and the growing cost of health c are. preventative health c are. most of our elderly Page 12 . have contributed to a nursing shortage which threatens the quality of professionally-provided elder care. and living conditions in our country over the course of the last century. Ohio As mentioned in our Market Analysis. elder-care alternatives along the Eden Care model are being founded. 1998 “Elder Care Today and Tomorrow. that the quote above. Churches and other organizations can’t always take up the slac k in this area. ". based on years of caring for elderly patients. Columbus. Fortunately. Phyllis Moen and Emma Detinger of Cornell University point out. in families. in a paper for the Sloan Work Family Policy Center. Residents'/Patients' Needs Our own experience. the increasing kinds of career opportunities for women.2. At the same time.” -Senator John Glenn. But the new reality is that almost half the workforce is now female.” Fielding Hearing of the U. but we can no longer do that. S. not to mention the Baby Boomers. and in gender roles (Riley and Riley 1994. 2000). are unhappily surprised about the options available to them as they age. The organization of both work and career paths reflects a continued reliance on the male breadwinner template. The 21st century will witness concerns over childcare policies and prac tices morphing into concerns over dependent care policies and prac tices—an amalgam of both c hildcare and elder care. thanks to better nutrition. and so we are left with public policy dec isions about what happens. working as a You may notice that our list of "needs" seems to go in the opposite order to that of most hospital-model nursing homes.. assuming a workforce without family responsibilities (Moen and Yu 2000). families just took care of families and that took care of the problem of aging. many of whom were instrumental in c reating the counter-culture of the 1960's and 70's. Moreover.2. the percentage of the population over 75 is growing rapidly. most cannot afford to purchase comprehensive. just as AARP (formerly known as the American Assoc iation of Retired Persons) has bec ome a major representative of this non-traditional group." 4. much less child care (see disc ussion in Harrington 1999 and Moen 1992). April 27. round-the-cloc k care. meaning that most workers—male and female—have no one at home to provide care to older ailing or infirm relatives. as policies and prac tices fail to keep pac e with c hanges in the workforce. Unfortunately.Bright House 4. this is not an ac cident. Senate Special Committee on Aging.

The specialized care fac ilities. 4. affordability. The most common issues involved in their dec ision are distance from their home(s). quality of staff and fac ilities. to spec ialized care for people with Alzheimer's. 4. unstated elephant-in-the-room for families seeking care is the feeling of being a bad daughter or son or spouse. AIDS. 57 are part of a multi-home chain. None of them combine both assisted living and skilled nursing care with the alternative. Glastonbury. we do not seek to dismiss this feeling. and so on. to for-profit chains. Families' Needs Similarly.3 Service Providers Analysis There are a number of different options for families seeking nursing home care. and generous ac t. At Bright House. which are usually nonprofit. diabetes. come closest to our care model. in order Page 13 . the families of people seeking caring environments have their own set of needs they are seeking to fulfill: · · · Peac e of mind about their loved-ones' physical and mental state Relief from the time-consuming job of caring for their family members themselves Relief from the feelings of guilt which often overcome them when they find they do not have the physical. for-profit nursing homes Church-based nursing homes Veterans' Homes Others (like the Alzheimer's Resource Network) Of these. but to reassure families in everything we do that the choice to let us take care of their family member is a loving.Bright House population who need care are treated with the billing system's needs. Families will usually choose the highest level of care affordable within 45 minutes to one hour of their homes. and offer individualized nursing care. who is not willing or able to put her life on hold to take care of a much-loved family member. but are usually reserved for people with a particular ailment in need of intensive medical assistance.2 Alternatives and Usage Patterns Families choose one elder care fac ility over another for a variety of reasons. non-hospital model we use. and particular medical specialties nec essary for their family member. 4.3. in mind. emotional. and Farmington). from in-hospital recovery centers. and not their own. These can be broken down into four rough groups (in descending order): · · · · Private. and only 15 are nonprofit.3. kind. or intellectual resources to personally provide appropriate care for those they love The big.1 Organization Participants There are 125 Medicare-licensed senior care providers within 25 miles of Middletown (out to Hartford.

Leeway. Roc kville · · · · For-profit. Its size makes it able to care for many patients. religious based.16 nh/rd 125 beds 3 deficiencies The Grimes Health Center. and has a fairly low rate of nursing hours per resident day. compared to 11 at Fox Hill). Leeway is Connecticut's first and only skilled nursing home dedicated solely to the treatment of people living with AIDS. for-profit. however.37 nursing staff hours/resident day 150 beds (not 150 rooms) 11 deficiencies in Medicare inspec tion Fox Hill Center is typical of the hospital-model nursing home. part of a chain 3. Sister Anne Virginie Grimes Health Center. is nonprofit. has the highest rate of nursing care per resident day. like many religious care centers. work as a self-managed team. Its small size and nonprofit status allow it to foc us on providing individual attention.3. Our primary caregivers. and high quality marks in inspec tion. the 6 Elder Assistants.. Inc. It is much smaller than the other two described. Quality of care. New Haven · · · · Nonprofit 5.3 Main Alternatives The following three organizations are representative of the types described above: Fox Hill Center. but often at the expense of individual attention. It is large (150 beds).04 nh/rd 40 beds 4 deficiencies Leeway is a typical spec ialized private (not in a hospital) nonprofit care fac ility. meeting with the Medical Director and the nurse on-call every morning to coordinate care for the Page 14 . and has a slightly higher rate of nursing hours per resident day than the for-profit centers. New Haven · · · · Nonprofit. loc ated in a hospital 4. despite its large size.Bright House to make visiting their family member easier. 4. is noticeably higher (3 deficiencies in inspec tion.0 Management Summary Caregiving Management Bright House offers a different management structure from that of the typical hospital-model nursing home. 5.

Morgan will be in c harge of all financial operations at Bright House. and expec t to complete our team by mid-December. the nursing and caregiving staff. and oversaw the creation. and development efforts. Dr.1 Management Team Gaps We still need to hire one swing-shift LPN. Financial Management: Madeleine Morgan has been overseeing financial management of nonprofit organizations in Connecticut for 27 years. and professional recognition for. overseeing billing. Dr. Mildred Johnson is our Medical Director. Our compensation pac kages. and one Elder Assistant. management structure.Bright House coming day. helping us design advertisements and broc hures. personnel payment and benefits. Dr. "I wish everyone could have the same love and attention Dr.2 Caregiving Organizational Chart Page 15 . of their Elder Assistant training program. Janice Ruthers is a retired ad executive living in Middletown with her husband (a professor at the university). disc uss. which provides certification for Certified Nursing Assistants (CNA) to provide in-home hospice and respite care. She bec ame involved in our project when her mother developed a long-term care plan with Dr. and caregiving requirements are designed to continually remind our LPNs and Elder Assistants how very valuable they are. are expec ted to note. need help. 5. and has been integral in designing the physical layout. Johnson has served as the head of Gerontology for six years at The Connecticut Hospital. in their combined estimation. their nursing staffs as the reason for their adequate staffing. Ms. Johnson which included home-based hospice care. The rest of our already-hired caregiving staff brings a whopping collective 75 years of professional experience in c aring for elderly patients. She will be working 20 hours per week in our offices as a volunteer for the first two years of our plan. soc ial. Although the Medical Director has the ultimate responsibility for the health and well-being of all residents and visitors. and mental well-being. Johnson showed to my mother. Johnson has 20 years of experience working with elderly patients in this area. last year. 5. Johnson's connections at The Connecticut Hospital. and priorities of Bright House." Madeleine said. with their different kinds of knowledge about the residents' physical. Advertising and Marketing: We are fortunate to have a skilled public relations officer in our group. at the latest. We are currently recruiting through Dr. A 2001 study by the Robert Wood Johnson Foundation found that the small percentage of Chief Nursing Officers reporting no nursing shortages in their fac ilities at the time of the study cited formalized programs foc used on the needs of. management structure. and to plan events like our Open House in December to let the public see the results of our efforts. and recommend courses of ac tion for all residents who.

bedsores. Johnson) Page 16 . All benefits are included in the Personnel monthly payments. energy. and a Development officer) offer benefits with a higher employee contribution.5 FTE = one week paid vac ation/year. etc. Our assisted living retreat ac ross the lawn will make use of these skilled nurses. sick leave. living wages is evident in our personnel plan. we need the following medical and caretaking staff: · 1 full-time Medical Director (Dr. all full-time staff positions include full health benefits. In addition to its small size.75 hours per resident day (this includes Certified Nursing Assistants). Our committment to fair. and two weeks paid vac ation time per year. Our part-time positions (1 Medicare Holistic/Billing Specialist. Our Development Officer already has a second part-time position with a loc al patients. To ensure the best possible care for permanent and respite-care residents. nursing aides with spec ial training for providing care in a holistic setting. Our Personnel Plan reflects our committment to offer employment that is not only meaningful. and preventable hospitalizations when nursing staff levels dropped beneath 2. the first to measure resident outcomes in relation to nursing staff levels. A study in 2000 by the Connecticut Legislative Program Review and Investigations Committee. we are working with them to coordinate her hours and provide her with a full benefits pac kage. but compensates our employees fairly for their time. Given the current and foreseeable nursing shortages. found residents were at increased risk for malnutrition. and the emotional toll it takes to spend your days caring for others. increasing with seniority in years two and three.3 Personnel Plan One of the greatest stumbling bloc ks for traditional nursing homes is the dissatisfac tion and high turnover rate of its staff. and paid vac ation in proportion to FTE (full-time equivalent) worked (.Bright House 5. this is an especially troubling tendency. but will rely for the most part on the care and attention of our Elder Assistants.). To meet our staffing goals. our Skilled Nursing Care Fac ility's personnel plan will provide no less than 5 hours per resident day of nursing attention. which provides for individual attention.rights advoc ac y group. dehydration.

000 $59.000 $117. The Milestones Chart.000 $0 $255.000 $0 $223.500 $0 $100. marketing.Full-time 35-40 hrs.000 $221.400 $34.400 $0 $0 $14.125 Year 2 $66.125 $217. 5-10pm) (still seeking) 6 full-time Elder Assistants (5 CNAs with CPR and First Aid training are currently taking part in our spec ial Elder Care training.800 $0 $98.Part-time Marketing Subtotal Fundraising Personnel Development Officer .000 $118.600 $64.0 Strategy and Implementation Summary We have set ourselves ambitious goals. below. We have already mentioned the ongoing caregiver meetings.000 14 $579.000 $255.400 14 $551.000 $245.000 $34. with c lear responsibilities and budgets. 30 hours. switching 4 and 3 days/week) (hired—will start training December) 1 swing-shift LPN (35 hrs/week.) Page 17 .500 Year 3 $67.500 $0 $0 $15. where applicable.445 $15. and implementation goals in graphic format.500 $65. House Councils.Bright House · · · 2 full-time LPNs (alternating 30.500 $15.000 $58. and other feedback to measure our caregiving performance.and 40-hour weeks—9pm to 7am.000 $34.Part-time Name or Title or Group Name or Title or Group Subtotal Total People Total Payroll $66. night LPNs . measurable milestones.000 $119. shows the concrete financial.500 $242.000 $14.000 $33.520 $223.000 $65. the sixth still needs to be hired) We will also need administrative and development personnel: · · · 1 full-time Financial Manager (Madeleine Morgan) 1 part-time (20 hours/week) Medicare Billing Specialist (Abby Hannah—currently helping to plan our computerized medical records system) 1 part-time Development officer (Jessica Breindel) Table: Personnel Personnel Plan Year 1 Medical/Clinical Personnel Medical Director LPNs .500 14 $615.500 6.000 $0 $0 $15. (Details can be found in the Milestones Table in the Appendix.000 $0 $99.520 $0 $221.swing shift. day Subtotal Caretaking Personnel Elder Assistants Other Subtotal Administrative Personnel Medicare Liason / Billing Specialist Financial Manager Janice Ruthers . The key to holding ourselves to these goals is to set concrete.

Ruthers $0 Morgan.000 Morgan.000 Ruthers $0 Morgan.Bright House Table: Milestones Milestones Milestone Collect Pledges for Remaining Funds Finalize Agreements w/ Medical Suppliers Finish All Remodeling Buy Furnishings Inspection Collect Donations Pledged Install-Test Computerized Medical System Place Ads in Hartford Courant Finish Brochures Test Billing System Finish Hiring Process Alternative Care Model Staff Training Open House First Residents Move in First Operational Review House Councils Begin Assisted Living Facility Full Add "What's New" Pamphlet to Brochures Totals Start Date 6/4/2009 7/30/2004 6/23/2004 8/15/2004 11/1/2004 7/26/2004 9/1/2004 10/1/2004 9/1/2004 10/15/2004 8/1/2004 12/1/2004 12/10/2004 1/1/2005 1/15/2005 1/20/2005 6/1/2005 6/1/2005 End Date 8/30/2004 9/30/2004 8/15/2004 11/1/2004 11/15/2004 11/15/2004 10/30/2004 10/15/2004 11/1/2004 11/10/2004 12/15/2004 1/1/2005 12/20/2004 1/5/2005 1/30/2005 1/20/2005 6/1/2005 6/20/2005 Budget $0 $0 Manager Breindel Morgan Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department $5.000 Johnson $0 Ruthers $0 ABC $0 Johnson. Elder Assistants Johnson. Morgan $0 Hannah $450 Ruthers $2. Johnson $0 Johnson $0 Breindel. Ruthers. Ruthers $200 Ruthers $12. Morgan $0 Johnson. Johnson $5. Morgan. Hannah $0 Morgan.650 $0 Page 18 .

Our private patients are billed at a slightly higher rate to ac count for the low Medicare reimbursement rate. We therefore are projecting reac hing "capacity" of our eleven-bed fac ility at 10 full beds. We intend. on the other hand. 7. Bright House would need 13 residents per month to break-even at current funding levels. the difference being made up for in donations. 7. and the typical 60-90 day reimbursement rate from Medicare. The skilled nursing fac ility. One other important assumption concerns payables: We have assumed collection days of 60. and savings gained through staff retention and the use of highly trained. not including the cost of any medication to be administered by our staff. Our non-standard model allows us to forecast for full oc cupancy in the main building. since turnover rates for assisted living residents are expec ted to be quite low (1-2 per year. to do better than this. but also to pay for the extra benefits they receive as part of living at Bright House. which averages our private residents' monthly up-front payment.Bright House 7. of course. The small size of our fac ility allows us a cost savings on maintenance and grounds.1 Important Assumptions A "full" elder care fac ility is generally 90% to 95% full.per-resident-day rates for our kind of services. Our resident monthly prices are based on the current Medicare nursing-hours. Our rates are roughly 2/3 of our nearest competitors. flexible. at most).0 Financial Plan As our Break-even Analysis (below) shows. Medicare patients are billed at roughly $135/day for nursing care. Elder Assistants. requires a certain number of empty beds to offer the flexibility needed to ac commodate shorter stays.2 Key Financial Indicators We will be closely watching two things: · · Private Resident capacity Medicare Billing payment rates and collection days Page 19 .

050.900 Year 3 $0.50 $0.Skilled Nursing Facility Other Total Funding Direct Unit Costs Assisted Living Main Residents Medicare Residents .050.Skilled Nursing Facility Other Total Units Unit Prices Assisted Living Main Residents Medicare Residents .287 150 94 0 244 Year 1 $3.00 $931.424 $0 $89.Skilled Nursing Facility Other Direct Cost of Funding Assisted Living Main Residents Medicare Residents .50 $0.00 $0.Skilled Nursing Facility Other Subtotal Direct Cost of Funding $0 $76.00 $4.000 $380.00 $480.700 Year 1 $0.200.00 Year 2 150 96 0 246 Year 2 $3.00 $480.00 $0.00 $0.00 $931.800 Year 2 $0.140 $0 $76.050.424 $0 $91.140 $0 $89.800 $0 $868.Bright House Table: Funding Forecast Funding Forecast Year 1 Units Assisted Living Main Residents Medicare Residents .000 $388.00 $4.700 $0 $860.00 Page 20 .00 Year 3 150 98 0 248 Year 3 $3.900 $0 $876.00 $4.00 $0.200.Skilled Nursing Facility Other Funding Assisted Living Main Residents Medicare Residents .287 $0 $91.00 $810.00 $480.000 $396.200.

Bright House Page 21 .

Page 22 .Bright House 7. below.3 Projected Surplus or Deficit The projected surplus and deficit follows.

635 65.425 28.500 $500 $0 $16.51% $98.012) $13.000 $0 $245.200 $0 $242.82% $546.80% $15.77% 7.800 $0 $237.000 $86.60% $99.000 $26.800 $0 $298.000 $15.000 $1.000 $24.125 28.98% $14.125 $4.22% Year 3 $876.37% Year 2 $868.900 $91.237 $70.000 $92.919 5.925 $5.598 $20.520 27.140 $217.000 $0 $16.300 31.287 $245.000 $0 $1.000 $1.000 $15.000 $18.4 Break-even Analysis The following Break-even Analysis table shows that with our forecasted operating expenses.517 27.924 $531.400 $82.200 $0 $11.262) -2.479 $0 $49.400 $0 $1.800 $89.876 61.287 $535.Bright House Table: Surplus and Deficit Surplus and Deficit Funding Direct Cost Medical/Clinical Payroll Non-reusable Medical Equipment #NAME? Total Direct Cost Gross Surplus Gross Surplus % Operating Expenses Caretaking Expenses Caretaking Payroll Groceries Cleaning Supplies Other Caretaking Expenses Total Caretaking Expenses Caretaking % Administrative Expenses Administrative Payroll Other Expense Account Name Depreciation Property Taxes Utilities Insurance Payroll Taxes Grounds and Building Upkeep Other Total Administrative Expenses Administrative % Fundraising Expenses: Fundraising Payroll Brochures.000 $25.000 $1.200 27. Marketing Fundraising Expenses Total Fundraising Expenses Fundraising % Total Operating Expenses Surplus Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Surplus Net Surplus/Funding Year 1 $860.751 $17.000 1.450 $0 ($24.000 $14.27% $15.065 $562.500 $13.200 $0 $239.25% $100.84% $503.425 ($10.000 1.500 $5.613 61.800 $14.300 $0 $276.800 $1.000 $20.08% $221.051 1.000 $5.400 $800 $0 $15.83% $223.325 $5.000 $0 $341.625 $28.812) ($9. Page 23 .200 1.000 $0 $1.717 $4.251 $29.520 $16.398 $71.000 $0 $254.424 $242.200 $12.700 $76.77% $492.88% $255.000 $0 $336.

We plan to reac h this fairly conservative goal by the second month of operations (see the Resident Forecast. we plan fundraising campaigns in years two and three of $35.) Also of note are future fundraising plans: With the help of our Development Officer.527. we need to serve 13 residents to cover costs.05 $41. since we plan to pay off the principal ahead of sc hedule. our plan maintains a healthy.5 Projected Cash Flow Our projected Cash Flow follows.001 $3. positive cash balance throughout.000.020 7.000 and $40. yet. even at these levels. including only a modest expec ted increase in income from residents in years two and three. above). Page 24 . Table: Break-even Analysis Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost 13 $45. single-family residences. (Developers' sketches included in appendix.Bright House including personnel. respec tively. These funds will contribute to our forecasted long-term loan payments.46 $312. Of spec ial note are plans to sell off two bac k ac res at the far south end of the property in July to loc al developers who have approached us about planning two large. Our projected fundraising goals and anticipated expenses are conservative.

000 $0 $0 $0 $819.761 Year 1 $0 $0 $0 $0 $0 $0 $35.525 $173.236 $818.505 Year 3 $551.215 $0 $0 $0 $35.549 $118. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.923 ($21.500 $277.423 $897.418) $97. VAT.761 $651.923 $0 $5.764 $0 $0 $0 $40.857 $615.675 $218.357 $856.000 $0 $848.215 $107.346 Page 25 .046 $579.505 $0 $5.405 Year 2 $0 $0 $0 $0 $0 $0 $40.830 $876.000 $0 $0 $0 $891.546 $29.000 $903.805 $868.405 $657.857 $11. VAT.601 $789. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance Year 2 Year 3 $645.500 $0 $25.600 $216.500 $282.445 $237.000 $916.Bright House Table: Cash Flow Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Funding Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax.000 $0 $0 $0 $937.000 $0 $0 $0 $25.

Bright House Page 26 .

215 $41.150 ($49.300 $923.000 $200.000 $1.800 $912.981 $97.970 $23.749 $774. fac ility.Bright House 7.729 $7.311 $734.054 Year 1 $725.135 $185.820 ($24.457 $761.051 $745.500 $0 $27. reflecting the value of our property. Page 27 .254 $118.281 Year 2 $725.700 $722.500 $0 $27.150) $49.311 $150.100 $31.749 $110.000 $177. Table: Balance Sheet Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Accumulated Surplus/Deficit Surplus/Deficit Total Capital Total Liabilities and Capital Net Worth Year 2 Year 3 $107.000 $212.249 $4.919 $699.939 $8.054 $699.882 $31.7 Standard Ratios The Ratios table which follows shows how we differ in asset and income structure from other continuous care fac ilities.500 $0 $27.919 $912.334 $8.135 $699.150 $11.281 $745. and medical and communication assets.6 Projected Balance Sheet Our Balance Sheet shows a continued high net worth.000 $2.000 $188.000 $178.262) $761.957 $725.919 $22.811 $4.000 $137.457 Year 3 $22.764 $42.500 $720.970 $923.000 $4.150 $769 $11.500 $899.200 $723.708 7.346 $42.635 $4.883 $31.708 $899.

to Liab.94% Year 3 0.93% Industry Profile 1.44 $173.a 0.Bright House Table: Ratios Ratio Analysis Funding Growth Percent of Total Assets Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Funding Funding Gross Surplus Selling.95% 2.a.a n.77% -3.00% 2.69% 14.59% 0.15 0.670 1.10% 100.a n.13 0.18 0.07% 3.77% n.74% 4.00% 61.03 3% 4.16 1.50 27 0.82 11.78% 0.00% 100.45% 19.02% 48.36% 21.00% 3.09 1.20% 1.45 6.60% 51.47% Year 1 5.31% -3.53 12.19% 1.37% 0.70% Year 3 -2.89 12.64% 79.26% 76.23% 100.58% 28.58% 5.97 n.96% 3.13% 5.25% 100.17 30 0.40% 100.03 19.13 57 11.a n.a n.00% 2.00% 61.a n.a n.00% 80.48% 6.30 0. Year 2 0.66% 48.64 $151.08% 63.22% 59.208 -0.36% 100.13 71 10.98% 20.94% Year 1 n.a n.63 1.a $161.62% 4.a n.64 23.15 n.24 0.28% -1.94 5.94 6. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Funding Current Debt/Total Assets Acid Test Funding/Net Worth 1.a 5.60% 0.13% 7.19% -2.27% 1.28% 23.80 n.61 1.48% 1.85% 2.09% 12.06 3% 5.39% 2.06 3% 5.74% 51.00% 65.96% 16.55% 36.77% 78.48 1.88% 12.119 3.18% 100.23% 15.34% 100.a n.26% 7.37% 59.90% 80.17 15.36 7.75% 0.23 1.40% 20.13 71 10.31% 84.20% 80.a 6.80% 7.94 5.88% 3.57% 1.20 n.a n. General & Administrative Expenses Advertising Expenses Surplus Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Surplus Margin Return on Equity Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab.a n.a Page 28 .89% 3.17 30 0.95% 8.23% 100.20% Year 2 1.25% 19.80% 4.20 54.00% 20.

Bright House Dividend Payout 0.00 0.a Page 29 .00 n.00 0.

00 $4.000 $16.00 $0.100 $0 $8.240 $0 $3.Skilled Nursing Facility Other Funding Assisted Living Main Residents Medicare Residents .200.400 $24.500 $0 $85.050.00 $32.480 $0 $7.200.00 $38.750 Month 1 $0.Skilled Nursing Facility Other Subtotal Direct Cost of Funding $0 $2.200 $0 $48.050.100 $0 $8.00 $0.00 Month 3 10 4 0 14 Month 3 $3.500 $0 $85.000 $16.480 $0 $6.200.Skilled Nursing Facility Other Total Funding Direct Unit Costs Assisted Living Main Residents Medicare Residents .00 $0.800 $40.00 $0.050.00 $810.200.800 $40.00 Month 11 14 10 0 24 Month 11 $3.00 $0.Appendix Table: Funding Forecast Funding Forecast Month 1 Units Assisted Living Main Residents Medicare Residents .00 $0.00 $0.00 $810.00 $810.00 $0.00 Month 6 14 9 0 23 Month 6 $3.00 $44.290 $0 $8.00 $0.050.00 Month 10 14 10 0 24 Month 10 $3.00 $0.00 $0.500 $0 $85.150 $0 $37.100 $0 $8.500 $0 $85.200.240 $0 $3.050.00 $44.00 $0.00 $38.800 $40.200.00 $4.00 $810.00 $25.200.00 $4.050.050.00 $0.430 $0 $2.050.00 $44.200 Month 3 $0.00 $32.00 Month 8 14 10 0 24 Month 8 $3.00 $810.00 $0.00 $810.800 $40.050.200.100 $0 $8.00 $0.240 $0 $4.00 $44.00 $810.250 Month 6 $0.00 $810.00 $4.800 $40.300 Month 9 $0.00 $44.00 $4.100 0% 0% 0% 8 3 0 11 Month 1 $3.00 $0.100 $0 $8.00 $4.200 Month 2 $0.00 $0.00 $0.00 $44.00 $0.600 $12.860 $0 $6.200.800 $40.100 $0 $8.200.00 $810.100 $0 $8.00 $4.500 $0 $85.400 $0 $70.00 $810.300 Month 10 $0.00% 20.500 $0 $85.00 $4.050.200.Skilled Nursing Facility Other Direct Cost of Funding Assisted Living Main Residents Medicare Residents .700 Month 4 $0.300 Month 8 $0.100 $0 $8.00 Month 7 14 10 0 24 Month 7 $3.800 $36.300 Month 12 $0.00 $4.00% 20.00 0.800 Month 5 $0.00 Month 4 12 6 0 18 Month 4 $3.050.00 $810.00 $4.290 $0 $7.300 Month 7 $0.00 $0.240 $0 $3.300 $0 $62.100 $0 $8.100 $0 $8.430 $0 $3.860 $0 $4.300 Month 11 $0.00 $0.00 $0.200.00 Month 5 12 8 0 20 Month 5 $3.450 $0 $81.00 Month 9 14 10 0 24 Month 9 $3.00 $810.00% Page 1 .00 $4.00 $4.00 $44.00 $0.Skilled Nursing Facility Other Total Units Unit Prices Assisted Living Main Residents Medicare Residents .200 $0 $48.00 Month 2 10 4 0 14 Month 2 $3.100 $0 $8.400 $32.050.00 $0.00 Month 12 14 10 0 24 Month 12 $3.

125 Month 8 $5.400 $0 $8.245 $1. day Subtotal Caretaking Personnel Elder Assistants Other Subtotal Administrative Personnel Medicare Liason / Billing Specialist Financial Manager Janice Ruthers .125 Month 11 $5.720 $18.500 $9.500 $9.200 $0 $0 $1.875 $20.600 $18.200 $2.720 100% 100% 100% $2.750 $0 $15.875 $20.200 14 $48.245 100% 200% 100% $5.500 $9.200 $0 $0 $1.200 $2.200 $2.250 Month 6 $5.750 $4.720 $18.400 $0 $8.245 $1.200 13 $43.245 $1.200 $0 $0 $1.245 $1.800 $5. 30 hours.200 $2.800 $5.200 Page 2 .400 $0 $8.200 $2.720 $18.750 $4.200 $0 $0 $1.200 13 $43.370 $1.200 13 $43.720 $18.750 $4.200 $0 $0 $1.800 $5.200 14 $48.200 $0 $0 $1.200 14 $48.250 $1.500 $9.200 $0 $0 $1.720 $18.800 $5.200 $0 $0 $1.500 $9.200 $2.875 $20.720 $0 $18.800 $5.200 $0 $0 $1.720 $0 $18.200 14 $48.750 $0 $15.400 $0 $8.800 $5.Full-time 35-40 hrs.500 $9.200 $0 $0 $1.200 $0 $0 $1.720 $0 $18.720 $0 $18.875 $20.200 14 $48.400 $0 $8.Part-time Name or Title or Group Name or Title or Group Subtotal Total People Total Payroll 100% $1.800 $5.800 $5.500 $9.400 $0 $8.750 $0 $15.400 $0 $8.720 $18.720 $0 $18.400 $0 $8.750 $4.750 $0 $15.720 $18.370 $1.250 Month 5 $5.245 $1.500 $9.370 $1.125 Month 7 $5.500 $9.875 $20.750 $0 $15. night LPNs .200 $2.200 $2.750 $4.800 $5.720 $0 $18.245 $1.200 13 $40.400 $0 $8.720 $0 $18.500 $9.swing shift.400 $0 $8.720 $0 $18.750 $4.500 $9.200 14 $48.720 $0 $18.720 $0 $18.125 Month 9 $5.720 $18.800 $5.400 $0 $8.720 $18.125 Month 12 $5.250 Month 4 $5.370 $1.125 600% $15.125 Month 10 $5.200 $2.720 $0 $18.875 $20.Part-time Marketing Subtotal Fundraising Personnel Development Officer .Appendix Table: Personnel Personnel Plan Month 1 Medical/Clinical Personnel Medical Director LPNs .875 $20.250 Month 2 $5.250 Month 3 $5.800 $5.200 $0 $0 $1.800 $5.200 $2.400 $0 $8.600 $0 $15.500 $9.200 $2.200 14 $48.720 $18.750 $4.200 13 $43.

26% $8.200 $0 $0 $1.250 $400 $0 $18.300 $8.200 $6.890 $29.400 $100 $0 $20.675 66.700 $4.675 66.000 $1.815 $53.100 $20.130 $48.200 $7.300 $8.200 $0 $100 $1.200 $1.81% Month 3 $48.000 $2.29% Month 5 $70.61% $8.300 $8.000 $2.44% Month 8 $85.100 $20.720 $1.080 $19.000 $2.44% Month 11 $85.200 $6.250 $7.100 $20.400 $100 $0 $20.70% $18.200 $7.100 $20.137 23.125 $400 $0 $28.200 $1.310 60.675 66.30% $18.237 $400 $0 $20.200 $7.70% $8.44% Month 10 $85.000 $2.720 $1.400 $100 $0 $20.95% $8.81% Month 4 $62.250 $400 $0 $22.200 $7.625 $56.70% $18.220 23.000 $1.300 $8.125 $400 $0 $28.670 68.310 60.000 $1.200 $1.506 $400 $0 $19.200 $0 $100 $1.000 $1.506 $400 $0 $19.200 $1.44% Month 12 $85.125 $400 $0 $28.237 $400 $0 $20.250 $400 $0 $18.95% $18.200 $0 $0 $1.300 $8.61% $8.400 $100 $0 $20.137 23.000 $2.000 $2.675 66.137 23.44% Month 9 $85.200 $0 $0 $1.200 $1.000 $2.220 41.200 $7.100 45.220 23.625 $56.200 $0 $100 $1.400 $100 $0 $17.125 $400 $0 $28.938 50.26% $8.406 40.200 $0 $100 $1.17% $8.200 $0 $0 $1.41% $8.720 $1.038 $400 $0 $18.430 $15.61% $8.406 40.61% $8.290 $20.237 $400 $0 $20.200 $0 $0 $1.125 $400 $0 $28.220 28.95% $18.000 $1.400 $100 $0 $20.70% $18.200 $0 $100 $1.000 $1.720 $1.220 23.000 $2.600 $1.200 15% 15% Month 1 $37.200 $1.89% $18.44% $15.300 $8.200 $6.506 $400 $0 $19.400 $100 $0 $20.70% $18.000 $1.100 $20.720 $1.11% Month 2 $48.25% $18.240 $15.240 $15.200 $0 $100 $1.56% $18.220 23.200 $0 $100 $1.890 $29.137 23.200 $0 $0 $1.200 $7.675 66.61% $8.Appendix Table: Surplus and Deficit Surplus and Deficit Funding Direct Cost Medical/Clinical Payroll Non-reusable Medical Equipment #NAME? Total Direct Cost Gross Surplus Gross Surplus % Operating Expenses Caretaking Expenses Caretaking Payroll Groceries Cleaning Supplies Other Caretaking Expenses Total Caretaking Expenses Caretaking % Administrative Expenses Administrative Payroll Other Expense Account Name Depreciation Property Taxes Utilities Insurance Payroll Taxes Grounds and Building Upkeep Other Total Administrative Expenses Administrative % Fundraising Expenses: Fundraising Payroll Brochures.200 $6.400 $100 $0 $20.200 $0 $0 $1.670 52.000 $2.720 $1.200 $0 $0 $1.480 $15.237 $400 $0 $20.200 $0 $0 $1.000 $1.125 $400 $0 $27.000 $1.000 $1.220 23.506 $400 $0 $19.860 $15.200 $3.125 $400 $0 $28.137 23.250 $400 $0 $18.237 $400 $0 $20.200 $0 $100 $1.78% $8.720 $1.220 23.400 $100 $0 $20.400 $100 $0 $20.000 $2.400 $100 $0 $20.200 $0 $0 $1.190 67.406 27.200 $1.400 $100 $0 $20.720 $1.200 $7.625 $56.200 $3.625 $56.000 $2.77% Month 7 $85.100 $20.625 $56.200 $0 $100 $1.000 $1.750 $2.70% $18.137 23.000 $1.406 30.000 $2.237 $400 $0 $20.220 32.137 24.510 $42.61% Page 3 .237 $400 $0 $20.720 $1.220 41.250 $400 $0 $20.625 $56.200 $0 $100 $1.675 66.200 $6.720 $1.200 $0 $100 $1.200 $1.435 65.800 $6.200 $1.200 $0 $100 $1.220 24.74% Month 6 $81.200 $0 $0 $1.200 $800 $0 $2.720 $1.000 $1. Marketing Fundraising Expenses Total Fundraising Expenses $1.200 $1.

218 $1.79% 1.945 $1.472 15.095 8.792 $0 ($13.557 $11.218 $1.118 $15.416) $1.826 ($11.118 $15.978 $1.65% 1.539 15.878 $11.557 $15.50% 1.845 $7.671 $0 $13.447 15.76% 1.41% $41.48% 2.49% $40.579 $0 $13.557 $15.826 $7.64% 2.826 ($11.Appendix Fundraising % Total Operating Expenses Surplus Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Surplus Net Surplus/Funding 5.188) -53.218 $1.324) -27.41% $41.30% $38.118 $15.557 $15.41% $41.422 15.118 $15.596 $0 $13.557 $15.775 $0 ($411) -0.41% $41.218 $1.118 $15.516) ($11.153 12.61% 1.41% $41.48% $41.750 $0 $6.74% 1.725 $0 $10.826 $1.268) $1.038 ($18.61% 1.522 15.365 $1.118 $15.69% $40.87% Page 4 .516) ($11.621 $0 $13.808 $0 ($13.85% 1.646 $0 $13.49% $40.218 $1.91% $40.307) -27.82% 1.557 $15.368) ($18.696 $0 $13.218 $1.557 $15.416) $1.497 15.821 $0 ($20.465 $1.41% $41.

000 $0 $0 $0 $74.539 $0 $1.245 $23.408 $0 $1.245 $23.271 $60.370 $18.000 $0 $0 $0 $63.675 $47.250 $505 $40.313 Month 1 $0 $0 $0 $0 $0 $0 $0 $36.313 $0 $28.457 $71.000 $0 $1. VAT.025 $12.370 $15.244 $58.833 $48.560 $8.313 $36.413) $21.000 $0 $0 $0 $75.975 $21.114 ($23.111 $0 $0 $0 $3.548 $74.429 $55.515 $43.215 Page 5 .482 $71.879 $71.421 $0 $0 $0 $3.300 Month 11 $0 $0 $0 $0 $0 $0 $0 $85.000 $0 $0 $0 $42.245 $23.321 Month 8 $0 $0 $0 $0 $0 $0 $0 $85.255 ($8.000 $0 $2.145 $61.734 $61.104 ($17.124 $2.675 Month 3 $0 $0 $0 $0 $0 $0 $0 $59.325 $85.300 Month 12 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $28.150 $315 $36.300 $63.684 $48. HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax.333 $31.943) $69.762 Month 7 $0 $0 $0 $0 $0 $0 $0 $84.104 $43.440) $23.755 $43.727 $10.684 ($2.975 $21.000 $0 $0 $0 $73.677 $11. VAT.050 $59.150 $9.245 $24.702 $10.000 $0 $106.000 $0 $0 $0 $67.975 $21.300 $63.573 $84.000 $0 $0 $0 $0 $0 $33.325 $85.000 $0 $0 $0 $60.975 $20.321 $63.702 $48.787 $81.300 $0 $500 $0 $1.325 $85.761 $63.171 $65.245 $22.978 $0 $1.556 $23.515 ($4.000 $0 $1.124 $48.430) $27.752 $10.315 $72.432 $71.370 $17.325 $85.649) $45.346 $84.00% $0 $5.075 Month 4 $0 $0 $0 $0 $0 $0 $0 $65.057 $0 $500 $0 $1.507 $71.000 $0 $2.075 $53.271 Month 5 $0 $0 $0 $0 $0 $0 $0 $76.938 $15.525 $45.588 $71.614 $43.592 $0 $0 $0 $2. HST/GST Paid Out Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance $40.677 0.680 $63.727 $48.300 Month 10 $0 $0 $0 $0 $0 $0 $0 $85.743 $76.245 $23.975 $17.245 $23.873 $0 $0 $0 $3.300 Month 9 $0 $0 $0 $0 $0 $0 $0 $85.994 $0 $0 $0 $3.560 $48.000 $0 $0 $0 $74.000 $0 $0 $0 $63.465 Month 2 $0 $0 $0 $0 $0 $0 $0 $45.465 $36.000 $0 $0 $0 $74.000 $0 $0 $0 $75.762 $63.000 $0 $0 $0 $74.752 $48.975 $21.682 $0 $500 $0 $3.Appendix Table: Cash Flow Pro Forma Cash Flow Month 1 Cash Received Cash from Operations Cash Funding Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax.370 $21.623 $107.314 $64.126 $0 $1.680 Month 6 $0 $0 $0 $0 $0 $25.100 $12.300 $63.598 $95.

018 $848.054 Month 12 $0 $5.150 ($49.000 $113.000 $223.000 $800 $724.621 $616.150 ($49.153 $699.100 $31.438 $3.500 $0 $27.500 $0 $27.000 $500 $749.150 ($49.531 $686.888 $869.471 $632.065 $45.000 $890.858 $890.000 $0 $25.552 $699.094 $699.700 $835.819) $603.000 $85.812 $862.000 $600 $749.635 $4.939 $8.000 $144.150) ($33.000 $155.150 ($49.150) $22.000 $900 $724.000 $650.200 $723.031 $199.682 $37.057 $9.570 $31.000 $91.821 $27.858 $672.958 $608.812 $17.531 Month 11 $725.Appendix Table: Balance Sheet Pro Forma Balance Sheet Month 1 Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Accumulated Surplus/Deficit Surplus/Deficit Total Capital Total Liabilities and Capital Net Worth Starting Balances Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 $78.500 $0 $27.965 Month 1 $750.150 ($49.000 $234.380 $900.000 $166.488 $850.112) $645.135 $699.000 $217.150) ($20.153 $209.423 $7.421 $41.440 $859.000 $0 $28.978 $23.500 $0 $27.150 ($49.000 $0 $750.151 $699.000 $300 $749.408 $21.912 $74.865 $840.860 $31.621 Month 2 $750.394 $55.853 $6.360 $659.000 $176.000 $86.150) ($47.800 $912.000 $214.958 Month 5 $750.000 $100.150) ($30.000 $229.000 $0 $5.794 Month 6 $725.888 $22.322 $602.290 $31.436 $699.500 $0 $27.094 $204.200 $869.133 $208.230) $602.100 $879.000 $233.150 ($49.200 $193.919 $699.151 $187.150) ($4.982) $619.254 $750.380 $22.000 $115.135 $185.054 $699.033 $95.873 $41.560) $632.135) $608.150) ($17.865 $22.600 $836.181 $20.000 $232.000 $220.240 $31.460 $84.617 Month 3 $750.173 $3.000 $100 $749.150 ($49.240 $31.676 $4.360 $879.033 Month 10 $725.900 $900.776 $202.480 $31.770 $22.917 $23.100 $31.724 $4.400 $848.000 $210.000 $700 $724.111 $40.150) $49.171 $63.000 $1.939 $8.150) $36.000 $212.224 $196.000 $0 $26.440 $22.150 ($49.000 $14.653 $9.176 $699.100 $31.994 $41.939 $8.000 $99.939 $8.000 $865.500 $0 $28.000 $1.000 $200 $749.150) $9.000 $699.000 $215.436 $207.900 $862.560 Month 9 $725.360 $22.000 $750.776 $699.181 $835.188) $629.471 Month 7 $725.000 $1.100 $723.100 $31.965 $629.094 $6.150 ($49.000 $0 $6.488 $17.000 $188.100 $31.592 $41.000 $69.858 $22.960 $8.512) $616.458 $23.150) ($46.651 $4.100 $31.112 $645.776 $5.033 $672.500 $840.939 $8.539 $27.150 ($49.000 $227.000 $232.000 $233.500 $0 $24.224 $699.700 $4.000 $0 $27.150 ($49.800 $850.018 $23.000 $865.323 $4.300 $859.380 $686.031 $699.631 $107.000 $135.150 ($49.436 $8.552 $7.552 $206.176 $190.133 $699.000 $400 $749.150) $0 $650.698 $3.000 $0 $27.322 Month 4 $750.560 $659.215 $41.200 $699.150) ($41.133 $9.617 $603.000 $31.794 $619.722 $21.919 $912.919 Page 6 .770 $836.112 Month 8 $725.531 $4.126 $32.000 $724.

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