Post-Acute Care Fractional CSMO Case Study
A unique network of skilled nursing facilities providing subacute care and long-term care services contracted with the Fannon Group (FG) to provide sales and marketing leadership, training and coaching to enable the organization to achieve revenue and profit objectives. The client operated in 3 states with unique sales and marketing challenges associated with each market including:
1. Languishing total and skilled census in high quality facilities (4 and 5 star rated by CMS) because of increased competition from providers with newer buildings.
2. Facilities that faced significant reputational issues caused by poor CMS 5-star ratings and documented incidents.
3. Facilities located in urban, suburban and rural locations.
4. Sales and admissions teams in need of training, support and coaching.
5. Lack of strategic census growth plans.
The initial plan created for the client included ongoing training, coaching, the development and execution of strategic marketing plans and assistance with the creation of collateral materials and marketing tools. The program also included creating digital and branding strategies for certain facilities in the network.
The plan created for this client emphasized several important initiatives to combat the specific challenges faced by the organization:
1. Training Content Provided to Client:
a. Post-Acute Care Business Development Masterclass
b. Converting Referrals into Admissions Masterclass
c. Sales & Marketing Leadership for Administrators
d. Outcomes as Competitive Advantages
2. Creation of Competitive Advantages Messages used to describe each facility’s unique strengths to referral sources and families making healthcare decisions.
3. Improve the referral to admissions process to provide better customer service to referral sources.
4. Increase qualified referrals through a comprehensive community based marketing strategy.
5. Develop relationships with new referral sources.
A highlight of the Fannon Group’s services for this client was creating the training content for the organization’s annual Administrator conference. FG managed 7 annual conference programs that included our extensive library of content, all of which is approved by NAB/NCERS for LNHA/CALA CEUS. FG also coordinated other speakers’ participation in conferences and gaining approval from NAB/NCERS for their content.
During our seven-year relationship FG’s role evolved from a Sales and Marketing Leader to a Chief Sales and Marketing Officer one adding strategic support services. Examples of strategic support provided by the Fannon Group for this client included:
Assisting with the evaluation and launch of facility-based hospice units, ventilator units and memory care neighborhoods.
Market demand analysis for potential management contracts and,
Assessments of potential acquisitions.
Results
Here at the Fannon Group we believe that the best way to determine our impact is to evaluate the financial performance of the organization.
The Fannon Group had an immediate financial impact on this client. In year 1 the same store annual revenue increased $10.6 million YOY, while NOI increased by nearly $1.0 million. FG’s impact increased as our relationship continued. By Year 3 revenue had increased by nearly $30.0 million YOY while NOI increased by nearly $5.0 million YOY. In total the Fannon Group’s impact on the organization’s revenue and NOI included the following results:
During the Fannon Group’s Tenure
Average Annual Revenue: $155.8 million
Average Annual NOI: $5.2 million
Before the Fannon Group’s Tenure
Average Annual Revenue: $136.2 million
Average NOI: $2.9 million
Total Financial Impact on the Organization
Total Additional Revenue Generated (7 Years): $137.2 million
Total Additional NOI Generated (7 Years): $16.1 million