In this industry, you see a lot of things some of which make me scratch my head. One of those things, I observed the other day when I had a potential resident come to my facility to inquire about residency. Unfourtenetly I informed him that I did not have any beds at the time. I did offer to call a facility down the street.

I called them and informed them about the gentleman, he spoke with them on the phone and informed them he could afford $1,800 a month and would qualify for long-term care. They informed him that they had strict orders from management not to admit anyone under $2,000 a month and informed him they could not help him.

Here is why I scratch my head, I know that the facility gets about 90% of its referrals from placement agencies. This was a commission-free resident that would have paid $1,800 a month from the first month compared to a resident paying $2,000 with a commission that will pay around 1,800 a month for 11 months. Not calculating the time that there are empty beds resulting in Zero revenue.

Hopefully, this chart opens some eyes and some strategies get changed……