Outsourced management won’t affect resident care
The Akron Care Center. Photo courtesy of Google
“Cutting costs does not mean cutting staff or employee hours”
By Cassandra Kyser
In late January, the Akron Care Center (ACC) entered into a five-year, full management contract with Generations Senior Management.
ACC Board President Jeff Morehead has words of reassurance for anyone who might be concerned if this partnership will impact residents.
“The day-to-day activities and care will look no different. We still are, and always will be, the Akron Care Center,” Morehead said.
Morehead elaborated on the partnership with Generations Senior Management. “The main goals of partnering with Generations is to one, settle our top management woes we've had in recent years, and two, focus on revenue-producing and cost-cutting strategies to help the ACC sustain successfully for the long run.
It’s important for everyone to know, cutting costs does not mean cutting staff or employee hours.
Generations will work with staff to find additional revenue producing opportunities, as well as review current costs, such as vendor contracts negotiating better pricing. Those are just a couple examples of the plans to come.
Most importantly, our top-notch care has never been in question and will always be at the forefront of every decision.
We continue to have great department leadership and floor staffing that allows the Generations team to focus solely on the business aspects of our facility.”
The ACC Board had previously hired Generations Senior Management to provide a top-to-bottom assessment of the facility, which was completed at the end of 2024.
In a previous interview, Morehead shared the terms of the five-year contract.
“Years one and two, we will pay them 3.5% of monthly gross revenue. Years three, four, and five, it will be 4.0% of monthly gross revenue.
Early cancellation will require written notice and come with a 30% charge of the remaining contract as a fee. However, if after four years we want to forgo the fifth year, there will be no penalty in doing so.”
As for the total cost, Morehead explained, “As an estimate, if we go all five years, the cost will be roughly $173,000 per year. Four years is estimated at $171,000 per year. These are figured off revenues we generated the last 12 months on average.”