Driving efficiency for a growing senior living network

Client background

A senior living provider that consists of four Continuing Care Retirement Communities (CCRC) and two Skilled Nursing Facilities (SNFs), totaling 120 SNF beds looking for assistance with an assessment of the finance department. The objective of the engagement was to assist management in evaluating the current organizational structure of the finance department. The goal was to find improvements in process and efficiency, opportunity areas and evaluate workload needs and potential cost savings.

Business challenge

The organization over the past five years has experienced rapid expansion. They acquired multiple facilities, within a three-hour radius of the original campus. The finance department staff is spread out between these facilities, and job duties were not consistent across the spectrum. Employees were not efficient, multiple employees were performing certain job duties on one site, while single employees were doing same duties on a different site. The organizational structure was inconsistent. Baker Tilly performed the following steps:

1. To evaluate roles, responsibilities and workload needs, each finance department employee was interviewed to gain an understanding of the job duties, and time spent performing certain functions.
2. Reviewed written policies and procedures.
3. Reviewed job descriptions
4. Reviewed organizational structure to determine if efficiencies existed.

Strategy and solution

Baker Tilly was able to identify numerous efficiencies across the organization’s structure as it relates to the finance department. The efficiencies started with job duties and workloads. Recommendations were made to change job duties, between employees to assist in leveling out workloads and to consolidate the finance department to one corporate site. Upgrades to electronic accounts payable, and evaluations of the general ledger and billing software were also recommended. Additionally, it was recommended that a more seasoned and knowledgeable controller was hired to assist with the restructuring process. It was recommended to help improve lines of communication between the finance department.

Accomplished results

Baker Tilly was able to propose a restructured detail organizational structure, in addition to all the recommendations. The proposed structure consolidated finance operations, assigned skilled managers and clarified job duties and workflows. It also provided a path to cross train employees, to allow for support for certain job duties, in time of emergencies. Baker Tilly helped the senior living provider save about $250K and position itself to absorb future acquisitions with a consistent, scalable structure.