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Practical Approaches to Managing the Downside of Growth

LTC & Senior Living Central CXO Summit

Minneapolis, MN

October 6, 2017

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Defining ‘Growth’…

•Expanding what you do well

•Exploring new opportunities

•Responding to the market

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Are you ‘Growing’ or ‘Chasing’?

•Growing = Building from the Core.

•Chasing = Pursuing something that may or may not be worthwhile.

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Key Considerations

•Time – are you in a hurry?

•Talent – is your team able, educated and committed?

•Capacity – is there room for another initiative?

•Agility – can one more thing be done with excellence?

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Key Considerations (cont.)

•Business Case

•Are you doing this because you want to?

or

•Are you doing this because you need to?

•Profitability

•Aligned with Core Business

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Does the opportunity stand on its own?

•Will someone pay for it? In the long term?

•Can the service be provided profitably?

•Does the service dilute attention from the Core?

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Does the opportunity create execution risk?

Variables to Consider:

•Service Delivery

•Staff Education

•Staff Retention

• IT

• Insurance

•Capital Expenditures

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Are your partners good partners?

Questions needing answers in Due Diligence:

•Leverage – who has it?

•Risks and Rewards – are they shared?

•Responsibility – is it balanced and understood?

•Benefits – do you rise and fall together?

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Tools and Processes to Protect You

Stick to the Basics: •QAPI

•Analyze Root Causes

•Periodic and Routine Reporting

•Qualitative and Quantitative Measures

•Surveillance Techniques

•Validate underlying assumptions

•Assess and measure performance

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‘Watch Your Six’…

Be mindful of anything that may:

• Disrupt the Core Business

• Damage Reputation

• Diminish Profitability

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Questions?

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