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Financial Implications of The Green House Model: Full NIC Article

Financial Implications of THE GREEN HOUSE® Model Overview

Robert Jenkens, MSRED; Terri Sult, MBA; Newell Lessell, MBA;
David Hammer, MS; Anna Ortigara, RN, MS, FAAN

Existing research establishes that THE GREEN HOUSE® model of nursing home care provides significant and sustained satisfaction and clinical improvements. Because these improvements have been difficult to achieve in traditional nursing homes without significant cost increases, potential adopters, policy makers, and advocates have asked if Green House homes can deliver these results within the cost neutral financials promised by the model’s transformational redesign.

Several recent studies, each limited in scope but with mutually reinforcing findings, provide growing evidence that The Green House model’s operations are comparable in cost to traditional nursing home operations as well as nursing homes implementing other culture change practices. Capital costs for Green House homes are found to be equivalent to or less than similar culture change models. Occupancy and private pay revenues are found to increase.

Major findings include:

• Significantly more direct-care and nursing time is delivered in The Green House home
• Overall staffing needs and costs do not increase compared to traditional settings due to a shift from supervisory and department hours to direct care hours.
• The Green House model uses time more effectively, delivering significantly more direct care and nursing hours within lower total direct service hours.
• Average operating costs for Green House homes are between the 50th to 60th percentile of nursing homes nationally.
• Consistent and financially important differences were found in Green House providers’ overall occupancy (7% higher) and private-pay occupancy (a 24% increase) compared to nursing home averages.
• No hidden or unexpected costs were associated with The Green House model.
• Green House homes’ capital costs, including all private rooms and bathrooms, were found to be at the low end of culture change models.

These research results, coupled with anecdotal experience of early adopters, indicate that The Green House model and implementation process offers a strong and flexible option for organizations seeking proven innovations to address current challenges and future opportunities.

NIC GHP One Page Summary

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Financial Implications of The Green House Model_Senior Housing &Care Journal

Copyright© 2011, National Investment Center (NIC) for the Seniors Housing & Care Industry. No part of this document may be reproduced, stored in
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8 thoughts on “Financial Implications of The Green House Model: Full NIC Article

  1. The Green House Project is of high interest to my family as we consider the establishment of a senior care facility in a Mississippi community. I look forward to learning more about this model.

    1. Savannah,
      We are at day one of starting to investigate the interest in the community for a Green House project. What have you done up to this point to get started on your project?

  2. I am very impressed with the Green House Model. I am currently helping two community-based facilities: one for the mentally challenged elderly and the other facility for seniors in the District of Columbia. The owner desires to transition into a similar Green House Model. I will include your findings in my report. Thanks and I look forward to your future development.

  3. I am on the board at the Green House in Bentonville AR. We are interested in improving our services and opperating in a more ecconomical way. Any suggestions would be helpful.

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