Long-term care for seniors and the critically and chronically ill is a vital service that helps to improve the health and quality of life for people who require care day-to-day. If you are thinking about opening your own long-term care facility, or operating a long-term care facility, then you also understand that there are major costs associated with running and operating a long-term care facility. Long-term care facilities can still be a financially viable business, however, if you know what expenses to expect and how to manage the large costs. Here are three of the largest costs long-term care facilities face.
The first and typically largest cost that long-term facilities face is the costs of staffing the long-term care facility. To run a successful long-term care facility, you are going to need a lot of staff with varying qualifications and skill sets. You are going to need registered nurses and doctors to take care of patients, as most everyone in the facility will require daily medical attention. You also need kitchen staff to prepare meals for the residents and staff to run enrichment programs and ensure a high quality of life for all residents. Be prepared to pay for quality employees.
Prescription Drug Expenses
Another major cost that long-term care facilities face is the cost of prescription drugs for patients. Long term care facilities often can get prescription drugs sourced from special long-term care pharmacies, which are often owned or operated by the long-term care facility as well. But if you live in the United States, you know that drug prices are outrageous. When it comes to drug prices, price fluctuations present a challenge for facilities. Bulk contracts that involve major supply deals are a great way to get the best price possible on your prescription drug needs in the face of changing supply and demand.
The final large cost that long-term care facilities face is the cost of rent or building costs. Rent is always expensive, regardless of what kind of property you are trying to rent. Owning buildings and property is expensive as well, with interest rates set to continue to skyrocket this year. The largest fixed cost that operating a long-term care facility carries with it is the cost of rent. A good way to save on this is to own the building yourself. While you will have a mortgage to pay, you are building ownership of the asset which is essential for growing your asset pool.
Running a long-term care facility is far more expensive than many people realize. If you operate or want to operate a long-term care facility, you need to understand the associated costs. Learn about these three most common large costs that long-term care facilities face so that you are prepared.
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