In our recent 2022 CFO Benchmarks survey, we found that three-quarters of Finance leaders increased their forecast frequency this year, partly in response to pandemic challenges.
In response, and to effectively balance changing costs, staffing, and regulations, many Senior Living operators have had to reconsider how they budget and forecast.
Let’s use Senior Living Group as an example. As the demand for their services grew, using Excel files for budgeting and forecasting was difficult.
Today, we’ll look at how Senior Living Group automated their budgeting and forecasting processes, improving the care they offer in their communities.
Who is Senior Living Group?
To support their rapid growth, Senior Living Group needed an effective way to analyze their occupancy rates and standards of care.
The Challenges of Forecasting Occupancy
50% of Senior Living Group’s operating costs are government funded, which means they must provide quality care to the public. To receive government funding, Senior Living Group must forecast the number of residents they will serve over multiple periods and the type of care they need. In addition, Senior Living Group must run a profitable operation for their company’s French ownership group.
Why Senior Living Group Chose Prophix
Senior Living Group sought to automate their financial processes. They understood that manual finance processes were limiting their ambitious growth plans, which motivated them to find a Corporate Performance Management (CPM) platform.
Automating Senior Living’s Forecasting & Reporting Processes
With Prophix, Senior Living Group was able to automate their budgeting process and build multi-year plans. They can also conduct rolling forecasts and compare them against their annual budget, allowing them to create scenarios to project three years into the future.
To monitor their ongoing performance, Senior Living Group generates a range of reports that address their consolidation requirements as defined by Belgian laws, IFRS public company reporting standards, and KPI-driven operational goals. Additionally, Senior Living Group leverages a financial consolidation model that offers detailed reporting for all their entities, including a snapshot of how much cash they hold at any given time.
Occupancy and staff availability are also important to Senior Living Group. With Prophix, they conduct variance analysis of how many beds they are licensed to occupy and how many beds are currently occupied. As a result, Senior Living Group maintains a 98.5% occupancy rate.
Just as Senior Living Group’s finance team analyzes occupancy, they also evaluate patient profiles. If they have too many patients of a certain type, they can adjust service levels accordingly. This analysis allows them to balance accommodations with the needs of their patients.
Forecasting Growth for Senior Living Group
Senior Living Group plans to build a fleet management model in Prophix to track fuel costs, vehicle maintenance, and fleet value. Their Office of Finance also plans to integrate their human resources software to facilitate more detailed personnel planning.
Senior Living Group may also utilize Prophix’s capabilities for analysis in other areas, such as modeling food service and electricity costs. Modeling the costs of working with potential vendors – and reviewing the project costs and profits of collaborating with them – will enable them to decide which vendor to choose.
Overall, Senior Living Group automated their forecasting and reporting processes with Prophix, allowing them to better serve their communities.