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PLAN OUTLINE
1. Executive Summary 1.1 Objectives 1.2 Mission 1.3 Keys to Success 2. Organization Summary 3. Services 4. Market Analysis Summary 5. Management Summary 6. Strategy and Implementation Summary 7. Financial Plan 8. Appendix
1. Executive Summary
Where would you want to live if you needed daily assistance? In your home, of course. Bright House aims to be that home for 14 lucky full-time assisted living residents, offering medically-skilled care in a respectful, self-sustaining community, and offering skilled nursing care for short-term residents. On our beautiful, newly remodeled 6 acre property (the former Wayfield Bed and Breakfast) in the small college town of Middletown, CT, Bright House brings together decades of experience and innovative, alternative visions of the potential in our elderly family members' latest years. In our first five years, we will establish a new kind of Elder Care model based on the idea that the elderly are fully-realized persons, with ideas, thoughts, and experiences which matter. Can you help us to realize this goal?
1.1 Objectives
For our first year, we have four financial objectives:
To raise adequate funding for start-up. To fill all of the rooms in the main house over the course of six months. To open the Skilled Nursing Facility, and maintain it at 9 to 10 rooms occupied for 25 days per month thereafter. Begin development implementation for the ongoing funding needs of years two through five.
To provide a warm, comfortable, safe and engaging home for up to 14 permanent residents. Ongoing feedback through the resident House Councils will give us a weekly update on our progress. To provide skilled medical care in a similarly respectful atmosphere to our temporary Medicare residents. To provide adequate training, mentoring and recompense to our caregiving staff to create job satisfaction.
1.2 Mission
At Bright House, we promote the dignity and self-worth of all of our residents, and strive to give them excellent quality of life, as defined by the residents, individually and as a group. To that end, we encourage resident group decision-making through the House Councils, access to all areas of their homes here at Bright House, and self-determination in activities, socialization, and food preferences. Bright House is not just a caregiving facilityit is their home, and their community. We also value the time, skills, and expert opinions of our staff. We are committed to providing fair and living wages, reasonable, structured work schedules, and clear duties and spheres of rights and responsibilities for each team member. We do not expect staff to do work for which they are not trained; we do expect them to share their suggestions for improving any aspect of Bright House working operations or caregiving. We aim to provide jobs which not only provide sustenance for our workers' families, but also allow them a space to make a difference in the world around them, through caring and expert assistance to our community's most vulnerable members.
We offer more resident-oriented, small-scale, home-model care than our competitors; Our innovative use of Elder Assistants lowers the cost of providing this care considerably; Our fair wages and team structure lower dissatisfaction, and thus turnover rates among our staff; Our on-site Skilled Nursing Facility ensures continuity of care when our residents need more intensive assistance.
2. Organization Summary
Bright House is chartered as a nonprofit 501(C)(3) corporation in Middletown, CT, with the goal of providing holistic and respectful assisted living and skilled nursing home care to a small group of elderly residents. Our primary location is the old Wayfield Bed and Breakfast, on Farmer's Road, which we have spent the last five months converting into a two building nursing home facility in line with Eden Alternatives "Greenhouse" model for enlightened elder living. (See architectural drawing, attached.) Our Medical Director, Doctor Mildred Johnson, M.D., M.S.W., of New Haven, is one of the most respected gerontologists in New England. She will be supported by four licensed practical nurses, and six Elder Assistants, who will perform all non-clinical duties such as daily assistance, laundry, cooking,
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and cleaning. Once a month, our contracted Nutritionist will visit the retreat to give cooking lessons and to review individual residents' dietary needs. The entire staff will meet with our Board of Directors three times a year to assess the staffing and other needs of the facility. Our Financial operations will be overseen by Madeleine Morgan, who has managed nonprofit funding and payroll departments for 27 years (see attached resume). She will be supported by a full-time Medicare Liaison/Billing Specialist, and a part-time Development Officer.
Long-term assets include our existing location, the former Wayfield Bed and Breakfast, currently assessed at $400,000 including renovations. The location was willed to us by Evelyn and Jack Bright last February, with the condition that we include a small Medicare facility as part of the overall plan. This category includes new Long-term Assets needed as follows: $200,000 for (long-term, resalable) medical equipment, and $150,000 for initial furnishings, after the renovation. Medical Equipment:
1 Fully-loaded Crash Cart Standard monitoring equipment (blood pressure, sugar, etc.) Call-button system
Furnishings: For the common areas of both buildings, we will need couches, self-lifting recliners, tables, and chairs suitable to our residents' needs. We have allocated $35,000 for furnishing the four common rooms. Each private room will need a hospital-capable bed, linens, a dresser, and a phone, at the minimum. With the remaining funding, that leaves just over $6,000 per room. This budget will allow us to provide attractive, functional, and comfortable surroundings to our residents in their new homes. 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 wingback/reclining chairs, and a second dressing table or its equivalent). Funding To fund these start-up costs, we have secured a low-interest loan for $210,000, and have collected donations and pledges in the amount of $291,500. We have also included the value ($400,000) of the Bright House property in the "donations collected" category to accurately reflect our assets. We must raise an additional $7,650 by January 1st to begin operations.
Start-up Requirements Start-up Expenses Legal Stationery etc. Advertising Insurance $500 $200 $2,450 $8,000
Computerized Medical Records System $20,000 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 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 Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) 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 Total Capital and Liabilities Total Funding $597,000 $94,500 $0 $7,650 $699,150 ($49,150) $650,000 $865,000 $914,150 $5,000 $210,000 $0 $215,000 $787,000 $78,000 $0 $78,000 $865,000 $49,150 $865,000 $914,150 $78,000 $6,000 $31,000 $750,000 $865,000 $914,150 $13,000 $5,000 $49,150
3. Services
We offer two services: Assisted Living and Skilled Nursing Care. We will begin providing services in January of next year.
3.4 Technology
In addition to our advanced medical equipment, the main use of technology at Bright House will be the installation and use of our computerized medical record system. The benefits of this system (described in the Start-up Summary, above) are numerous. The system will also allow residents to access their own individual records with a password at will, to ensure that they understand as much as they can about their own situation, and how to maintain their health. We are working carefully with DigInfoMedTel to ensure that all of our technology meets Health Insurance Portability and Accountability Act (HIPAA) standards before implementation. We will hold a series of HIPAA trainings with the software in mid-December to ensure that our staff is fullyknowledgeable in this area.
The current total population of residents 65 and older, according to the 2000 U.S. Census, is 155,071 in Middlesex County, and 857,183 for the same group in nearby Hartford County. (The percentage of elderly in both counties is slightly higher than the 12.4% of the overall Connecticut population.) Our projections reduce that number by 70% to account for those healthy enough to care for themselves, or with family members able to care for them, leaving us with a total potential market of 303,676. 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, and we are situated at their juncture), leaving us with 151,838. Of these, we estimate roughly 8.5% will have the means ($150,000 or more family income) to pay for full-time private care at our facility (based on the 2000 census data about Connecticut income). This leaves us with roughly 12,906 nearby upper-income residents of Hartford and Middlesex County who are 65 or older, and in need of medical or other daily assistance in their living situation. To project into the future, we again looked to the 2000 Census. The Census' Projected Population of Connecticut is as follows: 1995 467,000 2000 461,000 2005 456,000 2015 526,000 2025 671,000
While the overall population of Connecticut is projected to decline over the next five years, before rising again, we know that the proportion of the overall population age 75 and older (our target market age) is slowly rising. We therefore include a modest projected increase in potential customers of 1% over the next five years. Medicare residents and short stays: A study published recently in the journal Health Affairs by Morrissey, Sloan, and Valvona found that the proportion of Medicare patients transferred to post-hospital care has doubled since the Prospective Payment System (PPS) was introduced. Rather than staying in the hospital until recuperated, the current system preferentially delegates recovery care to private non-hospital facilities, leaving room in hospitals for urgent or crisis care. We base our projections for Medicare residents on the same figures listed above, but looking at the percentage of elderly with family incomes between $30,000 and $75,000 dollars,* rather than just the highest bracket, we get 40% of the population, or 60,735. We apply the same conservative 1% growth rate, below. *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. Although residents with lower incomes may have a need for our service, they are traditionally less likely to seek out alternative care.
Market Analysis Year 1 Potential Customers Privately-paying Full-time Residents Medicare Patients Other Total Growth 1% 1% 0% 1.00% 12,906 60,735 0 73,641 13,035 61,342 0 74,377 13,165 61,955 0 75,120 13,297 13,430 62,575 63,201 0 0 75,872 76,631 Year 2 Year 3 Year 4 Year 5 CAGR 1.00% 1.00% 0.00% 1.00%
representative of this non-traditional group, elder-care alternatives along the Eden Care model are being founded. Residents'/Patients' Needs Our own experience, based on years of caring for elderly patients, is that people seeking assisted living care and skilled nursing care have many of the same needs:
To be treated with respect and dignity To be actively engaged in a community of some kind To be involved in his/her own treatment and living plan To be cared for by skilled, medically-knowledgeable clinicians and caregivers, working as a team
You may notice that our list of "needs" seems to go in the opposite order to that of most hospitalmodel nursing homes; this is not an accident. Unfortunately, most of our elderly population who need care are treated with the billing system's needs, and not their own, in mind. Families' Needs Similarly, the families of people seeking caring environments have their own set of needs they are seeking to fulfill:
Peace 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, emotional, or intellectual resources to personally provide appropriate care for those they love
The big, unstated elephant-in-the-room for families seeking care is the feeling of being a bad daughter or son or spouse, who is not willing or able to put her life on hold to take care of a much-loved family member. At Bright House, we do not seek to dismiss this feeling, but to reassure families in everything we do that the choice to let us take care of their family member is a loving, kind, and generous act.
Private, for-profit nursing homes Church-based nursing homes Veterans' Homes Others (like the Alzheimer's Resource Network)
Of these, 57 are part of a multi-home chain, and only 15 are nonprofit. None of them combine both assisted living and skilled nursing care with the alternative, non-hospital model we use.
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For-profit, part of a chain 3.37 nursing staff hours/resident day 150 beds (not 150 rooms) 11 deficiencies in Medicare inspection
Fox Hill Center is typical of the hospital-model nursing home. It is large (150 beds), for-profit, and has a fairly low rate of nursing hours per resident day. Its size makes it able to care for many patients, but often at the expense of individual attention. Sister Anne Virginie Grimes Health Center, New Haven
Nonprofit, religious based, located in a hospital 4.16 nh/rd 125 beds 3 deficiencies
The Grimes Health Center, like many religious care centers, is nonprofit, and has a slightly higher rate of nursing hours per resident day than the for-profit centers, despite its large size. Quality of care, however, is noticeably higher (3 deficiencies in inspection, compared to 11 at Fox Hill). Leeway, Inc., New Haven
Leeway is a typical specialized private (not in a hospital) nonprofit care facility. It is much smaller than the other two described, has the highest rate of nursing care per resident day, and high quality marks in inspection. Its small size and nonprofit status allow it to focus on providing individual attention. Leeway is Connecticut's first and only skilled nursing home dedicated solely to the treatment of people living with AIDS.
5. Management Summary
Caregiving Management Bright House offers a different management structure from that of the typical hospital-model nursing home. Our primary caregivers, the 6 Elder Assistants, work as a self-managed team, meeting with the Medical Director and the nurse on-call every morning to coordinate care for the coming day. Although the Medical Director has the ultimate responsibility for the health and well-being of all residents and visitors, the nursing and caregiving staff, with their different kinds of knowledge about the residents' physical, social, and mental well-being, are expected to note, discuss, and recommend courses of action for all residents who, in their combined estimation, need help. A 2001 study by the Robert Wood Johnson Foundation found that the small percentage of Chief Nursing Officers reporting no nursing shortages in their facilities at the time of the study cited formalized programs focused on the needs of, and professional recognition for, their nursing staffs as
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the reason for their adequate staffing. Our compensation packages, management structure, and caregiving requirements are designed to continually remind our LPNs and Elder Assistants how very valuable they are. Dr. Mildred Johnson is our Medical Director. Dr. Johnson has served as the head of Gerontology for six years at The Connecticut Hospital, and oversaw the creation, last year, of their Elder Assistant training program, which provides certification for Certified Nursing Assistants (CNA) to provide in-home hospice and respite care. Dr. Johnson has 20 years of experience working with elderly patients in this area, and has been integral in designing the physical layout, management structure, and priorities of Bright House. The rest of our already-hired caregiving staff brings a whopping collective 75 years of professional experience in caring for elderly patients. Financial Management: Madeleine Morgan has been overseeing financial management of nonprofit organizations in Connecticut for 27 years. She became involved in our project when her mother developed a long-term care plan with Dr. Johnson which included home-based hospice care. "I wish everyone could have the same love and attention Dr. Johnson showed to my mother," Madeleine said. Ms. Morgan will be in charge of all financial operations at Bright House, overseeing billing, personnel payment and benefits, and development efforts. Advertising and Marketing: We are fortunate to have a skilled public relations officer in our group. Janice Ruthers is a retired ad executive living in Middletown with her husband (a professor at the university). She will be working 20 hours per week in our offices as a volunteer for the first two years of our plan, helping us design advertisements and brochures, and to plan events like our Open House in December to let the public see the results of our efforts.
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1 full-time Medical Director (Dr. Johnson) 2 full-time LPNs (alternating 30- and 40-hour weeks9pm to 7am, switching 4 and 3 days/week) (hiredwill start training December) 1 swing-shift LPN (35 hrs/week, 5-10pm) (still seeking) 6 full-time Elder Assistants (5 CNAs with CPR and First Aid training are currently taking part in our special Elder Care training; the sixth still needs to be hired)
1 full-time Financial Manager (Madeleine Morgan) 1 part-time (20 hours/week) Medicare Billing Specialist (Abby Hannahcurrently helping to plan our computerized medical records system) 1 part-time Development officer (Jessica Breindel)
Personnel Plan Year 1 Medical/Clinical Personnel Medical Director LPNs - Full-time 35-40 hrs, night LPNs - swing shift, 30 hours, day Subtotal Caretaking Personnel Elder Assistants $221,520 $223,000 $255,000 $66,000 $34,125 $66,000 $58,500 $67,000 $59,000 $117,000 $118,000 $119,000 $217,125 $242,500 $245,000 Year 2 Year 3
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Other Subtotal Administrative Personnel Medicare Liason / Billing Specialist Financial Manager Janice Ruthers - Part-time Marketing Subtotal Fundraising Personnel Development Officer - Part-time Name or Title or Group Name or Title or Group Subtotal Total People Total Payroll
$0
$0
$0
$221,520 $223,000 $255,000 $33,600 $64,800 $0 $98,400 $14,400 $0 $0 $14,400 14 $34,000 $65,000 $0 $99,000 $15,000 $0 $0 $15,000 14 $34,500 $65,500 $0 $100,000 $15,500 $0 $0 $15,500 14
Milestones Milestone Collect Funds Pledges for Remaining Start Date End Date Budget Manager Breindel Department Department
5/13/2009 8/30/2004 $0
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Finalize Agreements w/ Medical 7/30/2004 9/30/2004 $0 Suppliers Finish All Remodeling Buy Furnishings Inspection Collect Donations Pledged 6/23/2004 8/15/2004 $5,000 8/15/2004 11/1/2004 $0 11/1/2004 11/15/2004 $0 7/26/2004 11/15/2004 $0 10/30/2004 $0
Morgan Morgan, Ruthers Morgan, Ruthers, Johnson Johnson Breindel, Morgan Hannah Ruthers Ruthers Morgan, Hannah Morgan, Johnson Johnson Ruthers ABC Johnson, Morgan Johnson, Elder Assistants Johnson, Morgan, Ruthers Ruthers
Department Department Department Department Department Department Department Department Department Department Department Department Department Department Department
Install-Test Computerized Medical 9/1/2004 System Place Ads in Hartford Courant Finish Brochures Test Billing System Finish Hiring Process Alternative Training Open House First Residents Move in First Operational Review House Councils Begin Care Model Staff 9/1/2004
12/1/2004 1/1/2005
6/1/2005
6/1/2005
$0
Department Department
7. Financial Plan
As our Break-even Analysis (below) shows, Bright House would need 13 residents per month to breakeven at current funding levels. We intend, of course, to do better than this.
The small size of our facility allows us a cost savings on maintenance and grounds. One other important assumption concerns payables: We have assumed collection days of 60, which averages our private residents' monthly up-front payment, and the typical 60-90 day reimbursement rate from Medicare.
Private Resident capacity Medicare Billing payment rates and collection days
Funding Forecast Year 1 Units Assisted Living Main Residents 150 150 150 Year 2 Year 3
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Medicare Residents - Skilled Nursing Facility Other Total Units Unit Prices Assisted Living Main Residents Medicare Residents - Skilled Nursing Facility Other Funding Assisted Living Main Residents Medicare Residents - Skilled Nursing Facility Other Total Funding Direct Unit Costs Assisted Living Main Residents Medicare Residents - Skilled Nursing Facility Other Direct Cost of Funding Assisted Living Main Residents Medicare Residents - Skilled Nursing Facility Other Subtotal Direct Cost of Funding
94 0 244 Year 1 $3,200.00 $4,050.00 $0.00 $480,000 $380,700 $0 $860,700 Year 1 $0.00 $810.00 $0.00 $0 $76,140 $0 $76,140
96 0 246 Year 2 $3,200.00 $4,050.00 $0.00 $480,000 $388,800 $0 $868,800 Year 2 $0.00 $931.50 $0.00 $0 $89,424 $0 $89,424
98 0 248 Year 3 $3,200.00 $4,050.00 $0.00 $480,000 $396,900 $0 $876,900 Year 3 $0.00 $931.50 $0.00 $0 $91,287 $0 $91,287
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Surplus and Deficit Year 1 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: $98,400 $0 $1,200 $12,000 $24,000 $14,400 $82,717 $4,800 $0 $237,517 27.60% $99,000 $0 $1,500 $13,000 $25,000 $15,000 $86,925 $5,000 $0 $245,425 28.25% $100,000 $0 $1,800 $14,000 $26,000 $15,000 $92,325 $5,000 $0 $254,125 28.98% $221,520 $16,800 $1,200 $0 $239,520 27.83% $223,000 $18,000 $1,200 $0 $242,200 27.88% $255,000 $20,000 $1,300 $0 $276,300 31.51% $860,700 $76,140 $217,125 $4,800 $0 $298,065 $562,635 65.37% Year 2 $868,800 $89,424 $242,500 $5,000 $0 $336,924 $531,876 61.22% Year 3 $876,900 $91,287 $245,000 $5,000 $0 $341,287 $535,613 61.08%
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Fundraising Payroll Brochures, 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
$14,400 $800 $0 $15,200 1.77% $492,237 $70,398 $71,598 $20,479 $0 $49,919 5.80%
$15,000 $1,000 $0 $16,000 1.84% $503,625 $28,251 $29,751 $17,200 $0 $11,051 1.27%
$15,500 $500 $0 $16,000 1.82% $546,425 ($10,812) ($9,012) $13,450 $0 ($24,262) -2.77%
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 $3,527.46 $312.05 $41,020 13 $45,001
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Also of note are future fundraising plans: With the help of our Development Officer, we plan fundraising campaigns in years two and three of $35,000 and $40,000, respectively. These funds will contribute to our forecasted long-term loan payments, since we plan to pay off the principal ahead of schedule. Our projected fundraising goals and anticipated expenses are conservative, including only a modest expected increase in income from residents in years two and three; yet, even at these levels, our plan maintains a healthy, positive cash balance throughout.
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, VAT, 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, VAT, HST/GST Paid Out $0 $0 $0 $551,445 $579,500 $615,500 $237,601 $277,935 $283,575 $789,046 $857,435 $899,075 $0 $5,000 $0 $0 $0 $25,000 $0 Year 1 $0 $0 $0 $0 $0 $0 $35,000 Year 2 $0 $0 $0 $0 $0 $0 $40,000 Year 3 $645,525 $651,600 $657,675 $173,236 $216,805 $218,830 $818,761 $868,405 $876,505 Year 2 Year 3
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Principal Repayment of Current Borrowing $5,500 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 $0 $25,000 $0 $0 $0 $29,215
$0 $0 $35,000 $0 $0 $0 $10,970
$0 $0 $40,000 $0 $0 $0 ($22,570)
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 $22,635 $4,500 $0 $27,135 $22,863 $23,347 $4,500 $0 $4,500 $0 $725,000 $725,000 $725,000 $1,200 $2,700 $4,500 $723,800 $722,300 $720,500 $912,054 $923,333 $899,555 Year 1 Year 2 Year 3 $107,215 $118,186 $95,616 $41,939 $8,100 $31,000 $42,334 $42,729 $9,513 $9,711 $31,000 $31,000 Year 2 Year 3
$27,363 $27,847
$185,000 $150,000 $110,000 $212,135 $177,363 $137,847 $699,150 $734,150 $774,150 ($49,150) $769 $49,919 $11,820 $11,051 ($24,262)
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Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Funding Current Debt/Total Assets Acid Test Funding/Net Worth Dividend Payout 1.06 3% 5.09 1.23 0.00 1.06 3% 5.45 1.16 0.00 1.03 3% 4.55 1.15 0.00 n.a n.a n.a n.a n.a $161,119 3.44 $173,670 1.64 $151,208 -0.80 n.a n.a
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8. Appendix
Funding Forecast Month 1 Units Assisted Living Main Residents 0% 8 3 0 11 Month 1 $3,200.00 $4,050.00 $0.00 10 4 0 14 Month 2 $3,200.00 $4,050.00 $0.00 10 4 0 14 Month 3 $3,200.00 $4,050.00 $0.00 12 6 0 18 Month 4 $3,200.00 $4,050.00 $0.00 12 8 0 20 Month 5 $3,200.00 $4,050.00 $0.00 14 9 0 23 Month 6 $3,200.00 $4,050.00 $0.00 14 10 0 24 Month 7 $3,200.00 $4,050.00 $0.00 14 10 0 24 Month 8 $3,200.00 $4,050.00 $0.00 14 10 0 24 Month 9 $3,200.00 $4,050.00 $0.00 14 10 0 24 Month 10 $3,200.00 $4,050.00 $0.00 14 10 0 24 Month 11 $3,200.00 $4,050.00 $0.00 14 10 0 24 Month 12 $3,200.00 $4,050.00 $0.00 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Medicare Residents - Skilled 0% Nursing Facility Other Total Units Unit Prices Assisted Living Main Residents Medicare Residents - Skilled Nursing Facility Other Funding Assisted Living Main Residents Medicare Residents - Skilled Nursing Facility Other Total Funding Direct Unit Costs Assisted Living Main Residents 0.00% 0%
Medicare Residents - Skilled 20.00% $810.00 Nursing Facility Other Direct Cost of Funding Assisted Living Main Residents Medicare Residents - Skilled Nursing Facility Other Subtotal Direct Cost of Funding $0 $2,430 $0 $2,430 20.00% $0.00
$0 $3,240 $0 $3,240
$0 $3,240 $0 $3,240
$0 $4,860 $0 $4,860
$0 $6,480 $0 $6,480
$0 $7,290 $0 $7,290
$0 $8,100 $0 $8,100
$0 $8,100 $0 $8,100
$0 $8,100 $0 $8,100
$0 $8,100 $0 $8,100
$0 $8,100 $0 $8,100
$0 $8,100 $0 $8,100
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Personnel Plan Month 1 Medical/Clinical Personnel Medical Director LPNs - Full-time 35-40 hrs, night LPNs - swing shift, 30 hours, day Subtotal Caretaking Personnel Elder Assistants Other Subtotal Administrative Personnel Medicare Liason / Billing Specialist Financial Manager Subtotal Fundraising Personnel Development Officer - Part-time Name or Title or Group Name or Title or Group Subtotal Total People Total Payroll Surplus and Deficit Month 1 Funding Direct Cost Medical/Clinical Payroll Non-reusable Medical Equipment #NAME? Total Direct Cost Gross Surplus $37,750 $2,430 $15,250 $400 $0 $18,080 $19,670 Month 2 $48,200 $3,240 $15,250 $400 $0 $18,890 $29,310 Month 3 $48,200 $3,240 $15,250 $400 $0 $18,890 $29,310 Month 4 $62,700 $4,860 $15,250 $400 $0 $20,510 $42,190 Month 5 $70,800 $6,480 $15,250 $400 $0 $22,130 $48,670 Month 6 $81,250 $7,290 $20,125 $400 $0 $27,815 $53,435 Month 7 $85,300 $8,100 $20,125 $400 $0 $28,625 $56,675 Month 8 $85,300 $8,100 $20,125 $400 $0 $28,625 $56,675 Month 9 $85,300 $8,100 $20,125 $400 $0 $28,625 $56,675 Month 10 $85,300 $8,100 $20,125 $400 $0 $28,625 $56,675 Month 11 $85,300 $8,100 $20,125 $400 $0 $28,625 $56,675 Month 12 $85,300 $8,100 $20,125 $400 $0 $28,625 $56,675 100% $1,200 $0 $0 $1,200 13 $40,250 $1,200 $0 $0 $1,200 13 $43,370 $1,200 $0 $0 $1,200 13 $43,370 $1,200 $0 $0 $1,200 13 $43,370 $1,200 $0 $0 $1,200 13 $43,370 $1,200 $0 $0 $1,200 14 $48,245 $1,200 $0 $0 $1,200 14 $48,245 $1,200 $0 $0 $1,200 14 $48,245 $1,200 $0 $0 $1,200 14 $48,245 $1,200 $0 $0 $1,200 14 $48,245 $1,200 $0 $0 $1,200 14 $48,245 $1,200 $0 $0 $1,200 14 $48,245 100% 100% $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 $2,800 $5,400 $0 $8,200 600% $15,600 $0 $15,600 $18,720 $0 $18,720 $18,720 $0 $18,720 $18,720 $0 $18,720 $18,720 $0 $18,720 $18,720 $0 $18,720 $18,720 $0 $18,720 $18,720 $0 $18,720 $18,720 $0 $18,720 $18,720 $0 $18,720 $18,720 $0 $18,720 $18,720 $0 $18,720 100% 200% 100% $5,500 $9,750 $0 $15,250 $5,500 $9,750 $0 $15,250 $5,500 $9,750 $0 $15,250 $5,500 $9,750 $0 $15,250 $5,500 $9,750 $0 $15,250 $5,500 $9,750 $4,875 $20,125 $5,500 $9,750 $4,875 $20,125 $5,500 $9,750 $4,875 $20,125 $5,500 $9,750 $4,875 $20,125 $5,500 $9,750 $4,875 $20,125 $5,500 $9,750 $4,875 $20,125 $5,500 $9,750 $4,875 $20,125 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
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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, Marketing Fundraising Expenses Total Fundraising Expenses Fundraising % Total Operating Expenses Surplus Before Interest and Taxes EBITDA Interest Expense 15% 15%
52.11%
60.81%
60.81%
67.29%
68.74%
65.77%
66.44%
66.44%
66.44%
66.44%
66.44%
66.44%
26
Taxes Incurred Net Surplus Net Surplus/Funding Pro Forma Cash Flow
$0 ($20,188) -53.48%
$0 ($13,324) -27.64%
$0 ($13,307) -27.61%
$0 ($411) -0.65%
$0 $6,095 8.61%
$0 $10,153 12.50%
$0 $13,422 15.74%
$0 $13,447 15.76%
$0 $13,472 15.79%
$0 $13,497 15.82%
$0 $13,522 15.85%
$0 $13,539 15.87%
Month 1 Cash Received Cash from Operations Cash Funding Cash from Receivables Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, 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, VAT, 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 $0 $500 $0 $1,000 $0 $0 $0 $40,250 $505 $40,755 0.00% $0 $5,000 $0 $0 $0 $0 $0 $33,313 Month 1 $28,313 $0 $28,313
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
$0 $0 $0 $0 $0 $0 $0 $36,465 Month 2
$0 $0 $0 $0 $0 $0 $0 $45,675 Month 3
$0 $0 $0 $0 $0 $0 $0 $59,075 Month 4
$0 $0 $0 $0 $0 $0 $0 $65,271 Month 5
$0 $0 $0 $0 $0 $0 $0 $76,680 Month 6
$0 $0 $0 $0 $0 $0 $0 $84,321 Month 8
$0 $0 $0 $0 $0 $0 $0 $85,300
$0 $0 $0 $0 $0 $0 $0 $85,300
$0 $0 $0 $0 $0 $0 $0 $85,300
$0 $0 $0 $0 $0 $0 $0 $85,300
$0 $500 $0 $1,000 $0 $0 $0
$0 $1,000 $0 $1,000 $0 $0 $0
$0 $1,000 $0 $1,000 $0 $0 $0
$0 $1,000 $0 $2,000 $0 $0 $0
$0 $1,000 $0 $2,000 $0 $0 $0
$0 $500 $0 $3,000 $0 $0 $0
$0 $0 $0 $3,000 $0 $0 $0
$0 $0 $0 $3,000 $0 $0 $0
$0 $0 $0 $3,000 $0 $0 $0
$0 $0 $0 $3,000 $0 $0 $0
$0 $0 $0 $2,000 $0 $0 $0
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Subtotal Cash Spent Net Cash Flow Cash Balance 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 $0 $5,000 $0 $5,000 $210,000 $215,000 $699,150 ($49,150) $0 $650,000 $865,000 $650,000 $14,653 $9,500 $0 $24,153 $209,000 $233,153 $699,150 ($49,150) ($20,188) $629,812 $862,965 $629,812 $750,000 $0 $750,000 $865,000 $750,000 $100 $749,900 $862,965 Month 1 $78,000 $0 $6,000 $31,000 $115,000 $69,057 $9,438 $3,570 $31,000 $113,065 Starting Balances
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$17,133 $9,000 $0 $26,133 $208,000 $234,133 $699,150 ($49,150) ($33,512) $616,488 $850,621 $616,488
$17,436 $8,000 $0 $25,436 $207,000 $232,436 $699,150 ($49,150) ($46,819) $603,181 $835,617 $603,181
$20,552 $7,000 $0 $27,552 $206,000 $233,552 $699,150 ($49,150) ($47,230) $602,770 $836,322 $602,770
$22,094 $6,000 $0 $28,094 $204,000 $232,094 $699,150 ($49,150) ($41,135) $608,865 $840,958 $608,865
$22,776 $5,000 $0 $27,776 $202,000 $229,776 $699,150 ($49,150) ($30,982) $619,018 $848,794 $619,018
$23,531 $4,500 $0 $28,031 $199,000 $227,031 $699,150 ($49,150) ($17,560) $632,440 $859,471 $632,440
$22,724 $4,500 $0 $27,224 $196,000 $223,224 $699,150 ($49,150) ($4,112) $645,888 $869,112 $645,888
$22,700 $4,500 $0 $27,200 $193,000 $220,200 $699,150 ($49,150) $9,360 $659,360 $879,560 $659,360
$22,676 $4,500 $0 $27,176 $190,000 $217,176 $699,150 ($49,150) $22,858 $672,858 $890,033 $672,858
$22,651 $4,500 $0 $27,151 $187,000 $214,151 $699,150 ($49,150) $36,380 $686,380 $900,531 $686,380
$22,635 $4,500 $0 $27,135 $185,000 $212,135 $699,150 ($49,150) $49,919 $699,919 $912,054 $699,919
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