BUSINESS TOOLS FOR THE ADULT FAMILY HOME PROVIDER

INTRO TO A PUBLIC-PRIVATE PARTNERSHIP Ramona Sangalli  Program Administrator

 Division of Aging and Adult Services  Arkansas Department of Human Services  Developed process to certify homes according to state standards Ines Polonius  Executive Director  alt.Consulting, Inc – non-profit organization providing intensive managerial assistance and capital to rural entrepreneurs since 1998  Developed toolkit for operators in addition to one-on-one assistance

CONTEXT 

Arkansas - 48% rural population

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63 of 75 counties classified a rural

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Southern third of state has significant lack of long term care providers

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At least one traditional nursing facility in each of the 75 counties.

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Transportation is a challenge for many families  Result: Elderly / disabled adults placed in nursing facility in next larger town and are disconnected from loved ones and friends

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Lack of population density and outmigration make corporate model unfeasible in majority of towns.

DEFINING ADULT FAMILY HOMES 

Unique model to provide care to elderly and disabled adults who can no longer live alone

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Any person who owns a home can apply to have their home certified as an AFH

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AFH can care for one to three adults at any given time.

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AFH provides basic care services only including: Bathing Dressing Grooming Feeding Meals and snacks Housekeeping and laundry services Basic activities to keep client engaged

ADULT FAMILY HOMES VS CORPORATE CARE The Triple Home Run for AFHs 

Elderly and disabled adults able to remain in their communities

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Creates new business opportunities in rural communities

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Creates jobs in rural communities

= Economically sustainable solution for providing long-term care for elderly and disabled adults in rural settings.

THE TYPICAL PROVIDER • Applicants included:  Retired individuals  Informal caregivers  Individuals with no business experience • Need for business skill training • Need for reference tool on setting up and managing business

CERTIFICATION PROCESS  First developed a three step certification process  Application  Provider forms  Background investigation  Training and certification testing  Administrative rules and certification requirements  Provider training manual  Home inspection

PUBLIC – PRIVATE PARTNERSHIP  The Need Operators in rural communities do not have management skills needed to create a successful and sustainable business  DHS staff did not have business skills to advise operators  Contract with alt.Consulting to:  Provide one-on-one assistance to four providers in order to learn unique needs of AFH providers  Developed detailed financial model to understand maximum expenses that would allow AFH to be sustainable  Develop a business toolkit to be given to each operator  CD with spreadsheet tools

INTRODUCING THE TOOLKIT  Getting Started  Zoning needs  Business license  Business bank account and separation of personal and business finances  Basic business organization and filing system  Policies and Procedures  Operating procedures outlining provider and client responsibilities  Health policies  Fire and disaster procedures

MONEY MANAGEMENT IS KEY!  Cash Flow management tool  Financial model template with detailed explanation of how to project expenses  QuickBooks accounting software  Detailed instructions for set up  Detailed instructions for data entry  Medicaid billing instructions including screen shots

MANAGEMENT TOOLS IN THE TOOLKIT  Human Resources  Federal labor laws  Managing payroll  Managing payroll taxes  Insurance  Marketing Plan  Effective, low-cost marketing strategies  Identify target markets  Detailed plan for outreach  Sample Business Plan specific to Adult Family Homes

PROGRAM OUTCOMES TO DATE  Total of 9 homes have been certified  6 homes are in rural communities  Several homes are also certified through Medical Foster Home Program of the Veterans Administration  Next step: Expanding to include corporate “family homes”

To download a copy of the Business Toolkit: http://www.daas.ar.gov/publications_resources.html Ramona Sangalli [email protected] Ines Polonius [email protected]

To download a copy of the Business Toolkit: http://www.daas.ar.gov/publications_resources.htm l Ramona Sangalli [email protected]

Ines Polonius [email protected]