Profit and Loss statements

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Stephenson County Nursing Home, AKA Walnut Acres, uses the industry standard of accounting and auditing. Anyone who says the nursing center has lost money is not telling the truth. The following P&L statements show this. There are some on the board that continue to challenge the common standard of the industry that collects payment from the mix of private, Medicare, and Medicaid very slowly. 

Transitional Care Management (TCM) was hired in May 2022 to address the concerns that the county board is not capable on their own of managing a nursing center. Besides day-to-day management, TCM has taken over all billing. Previously one of the reasons Walnut Acres was in poor financial condition was the result of improper billing. After many months, all past billing problems have been rectified by TCM.

It is a fact that TCM has written off (with board approval) a little over $1,000,000 of receivables that were easily collectible at one point and time. If that money was in the bank today, wouldn’t that change the conversation? The decisions the board made in the past were directly responsible for money that was written off and not collected. Why does the board get to wash that away and simply say, sell the building, when they were responsible for the building being in the financial shape it was in? TCM has done so well, they reached the bonus stipulated in their contract last year. They deserve every penny of that bonus.

It is also an industry standard to expect there to be some write-off of bad debt. This will always be necessary and cannot be avoided but some board members like to use it as leverage against TCM's management. According to some easily searchable articles, "Long-term care and senior living operators should set a benchmark for the percentage of bad debts each facility or community should not exceed. An acceptable percentage is typically 2% or less." 

Hiring TCM, during Casey Anthony's tenure as Chair of the Nursing Home Committee, resulted in the finances turning around. Casey Anthony was removed from this position when Scott Helm became the Chair of the County Board, in Jan 2023, directly because of her success in chairing that committee and the partisan wrangling to not allow any Democrats in leadership positions.