Investors find it hard to believe that “smaller is better” when it comes to skilled nursing homes. In an article this week by The National Real Estate Investor, The Green House Project is noted as an exception to that rule. The article explains that with tweeks to staffing levels and the support of Medicaid supplements, Green House homes not only attract more customers, they can be run less expensively and more safely than traditional long-term care.
Why was the Green House model created? Director David Farrell, talks about his days as a former nursing home administrator.
“I remember struggling to provide optimal care in those properties, which are driven by tight schedules and staffing [hierarchies] that places the person directly caring for the senior as the low person on the totem pole,” he says.
The article says the largest difference is staffing. In the Green House model, the traditional hierarchy is flattened.
They go on to discuss the Green House advantage with Ingrid Weaver, the Senior Vice President of operations at Porter Hills in Michigan.
“[Porter Hills] typically has about less than half of its residents on Medicaid, and with a full waiting list, the personal services allow the company to charge “a little bit” higher for the Green House care, Weaver says. However, because of the small staffing, the operational costs are actually cheaper. “In our legacy nursing home building, our health center cost per day is about $206.81, while at our Green House homes it’s about $189.60, with a savings of more than $124,000 per year,” Weaver says.
There are 146 Green House homes open in 23 states. There are 123 in development. Click here to find a Green House home near you.
Read the full article from the National Real Estate Investor.