by: Roy Barker, Director – Special Projects
Have you taken the time to consider how the health care reform will impact your community’s expenses? Industry experts have predicted these changes could drive up your cost of doing business by 10% to 15%.
While the U.S. Supreme Court recently upheld the Affordable Care Act (ACA), a recent insurance industry survey estimated that 20% of businesses have yet to start planning for what currently is the law. While most businesses still remain hopeful that some relief will materialize in the form of challenges, new regulations, appeals or even the upcoming November elections, it is still uncertain if or when this might happen. That is why now is the time to devise a strategic plan of action for your business!
What will it cost to insure all full time employees, those that work over 30 hours? How much cost will be incurred administering the new laws? Will it be more cost effective to insure all of your employees or drop your existing coverage altogether by opting out and paying a penalty? These are the tough questions that need to be answered today, so that a plan of action will be in place in the event there is no future relief from the ACA or at least the bulk of it stays in place as written today.
Not having a viable plan of action may not only cost you through higher expenses, lower future net operating income (NOI), lower operating margins, and lower cash flow, but it could also affect the terminal value of your community in the event that you need or want to sell or refinance your community in the next few years.
MDS clients have benefited from a guided analysis of what would be the most financially prudent decision for them and their community. We have also provided clients with quick reaction Operation Analysis for their community and assisted them in devising a strategic plan of action to help control their monthly expenses, maintain or increase operating margins and cash flow, and also provided a feasible value for their business in the event they decide to sell or refinance their properties.
Call MDS today to set up an appointment so that we can help you evaluate the best options for you and your specific situation. You can only make the best financial decisions when you have the full, complete financial picture in front of you.