Your facilities require continued investments to meet the varying demands of census change, evolving models of care delivery, and infrastructure maintenance. However, determining the optimal investment strategy can be complex.
- What is the best investment to make?
- Should you prioritize new construction?
- Or is renovation or expansion the more prudent choice?
- Perhaps a hybrid approach combining these options offers the most promising solution?
We understand that with so many variables at play, making the right choice can be difficult. Enter: QLEO master plan modeling and analysis software.
With QLEO, you can see today which scenario is best for you and your future. QLEO provides an objective analysis for what can be a highly subjective and emotionally charged decision-making process. Its purpose is to assist you in choosing the planning scenario that is the right fit for your investment.
How does it work?
QLEO projects and compares both the costs and benefits of numerous long-range facility plan scenarios. For each scenario, we evaluate the life-cycle costs and the related functional performance to help you choose the best option.
- Life-cycle Costs: What are the implementation and operational costs?
- Life-cycle costs are developed by our architects, who perform a needs assessment of current/potential facility conditions and expenses.
- Functional Performance: How well does your facility function?
- Functional Performance measures how well your facility is prepared to meet the challenges of the future.
- Cost / Benefit Analysis: QLEO provides an objective comparison, adding clarity to a layered decision-making process.
- Comparing the life-cycle costs and functional performance of your current or potential building(s) allows us to QUANTIFY the relationship between the scenarios.
- The logic-based cost/benefit analysis identifies the solution that offers the optimal value, creates superior environments, and maximizes the utilization of your funds. Furthermore, since this analysis is grounded in robust, objective data, it is capable of withstanding rigorous scrutiny.
QLEO in Action
In 2022, BLDD initiated a facility planning exercise at Fairview Haven Retirement Community in Fairbury, IL. Our goal was to establish an understanding of the community’s assets, liabilities, opportunities, and constraints in order to determine a planning solution that would provide the greatest value, best environment, and most efficient use of community resources.
Our planning team conducted an assessment of both the current conditions and functional performance of the campus, along with an analysis of space utilization.This was followed by in-depth engagement with both staff leadership and the board of elders.
The existing conditions assessment focused on identifying needs that should be addressed or considered within the next 20 years. By reviewing drawings and touring the campus, our team evaluated building systems such as lighting, plumbing, HVAC, and the building envelope. Materials and systems were identified that will need to be repaired or replaced in the future.
The functional performance assessment evaluated how well the current environment supports Fairview Haven’s needs and measures how well it is prepared to meet future challenges. After carefully reviewing and rating the functional performance of each existing building, the assessment found that several buildings including Skilled Nursing, Assisted Living, and Independent Living were performing in a “satisfactory” range but were close to a “borderline” range, while the newer Memory Care and and Maintenance Building scored in the “excellent” range.
Based on the existing conditions assessment, our team assembled life-cycle costs, which in conjunction with the functional performance assessment scores, were entered into our QLEO software to create a status quo scenario. This scenario served as the benchmark against which we evaluated all new scenarios.
In response to feedback from both the board and staff, BLDD generated multiple potential future scenarios. QLEO then provided cost benefit scores for each scenario. Our operational modeling consultant then reviewed Fairview Haven’s existing financial forecasts for incorporation into the status quo and each of the new scenarios.
Our Final Analysis Findings
At first glance, it appeared that razing the 60-year-old nursing home would be our first recommendation. Although the building is severely aged, out-of-date and a drain on the maintenance budget, the findings of the QLEO analysis, combined with financial projections, indicated the most feasible step forward at Fairview Haven should include the following:
- Phase 1: Build a new 49 apartment AL/IL building
- Phase 2: Create a solid revenue stream while maintaining balance of the community
- Phase 3: Build a new 30 bed SNF adjacent 49 AL/IL building
- Phase 4: Raze old SNF, AL Estates and IL Suites
- Phase 5: Build activity space addition at IL Condos
- Phase 6: Build 15 cottages
- Phase 7: Build landscaped park and pavilion
“Our board was skeptical that the architect was being called in to ‘rubber stamp’ what staff leadership felt was inevitable – demolishing skilled nursing. When the outcome and final recommendation was presented, they saw credibility in the process.” Dave Blunier, Executive Director
The key to making Fairview Haven’s best scenario financially palatable was limiting the initial investment to a product/service that could maximize a solid positive revenue stream. At the same time, operations and revenue from licensed nursing care (Fairview Haven’s predominant source of both revenue and expense) would need to be streamlined to avoid further losses. As sufficient funds become available from revenue generated by the new AL/IL building, subsequent phases of the plan can be implemented.
To learn more or to schedule a QLEO demo, call 844-784-44440 or email hello@bldd.com.
