Becoming an ACFI Consultant Part 3 – Calculate the Return, Not the Cost

About the same time I discovered that aged care facilities were underfunded because of improper application of the ACFI, and that some individuals could make a difference, I was having a conversation with a site’s ACFI coordinator. I was talking about my discovery that an increase in the use allied health could create an increase in revenue. Her sceptical response – “but how much does that cost? We can’t afford any more staff!”

 

After calculating the actual costs, it was very obvious that wages for suitably skilled staff weren’t an expense, but that they actually generated a return on investment. As it turned out, providing better care for the residents actually increased ACFI funding more than the cost of providing the service – by several thousand dollars per year per resident.

 

In some cases spending an extra $1,000 per resident meant an additional $9,000 per year in funding. All for improving care for the residents.  By then focussing on completely understanding the legislation, strict documentation compliance, and a transparent reporting process some aged care facilities were requesting as much of this approach as possible. And the result? Increasing their funding by more than $100,000 per annum after the cost of their new expenses, and in some cases a 600% Return on Investment (ROI).

 

This was a big win-win. The problem? In the time I was working this out, the site I was dealing with went bankrupt. Talking not just in terms of increases but overall results was my…

 

ACFI Consultant Lesson #3 – Don’t talk just in terms of the cost of the service you provide, but the Return on Investment you create