Valley Vista Care Corporation Vista Community Housing Corporation

Transcription

1 Campus Valley Vista Care Corporation Vista Community Housing Corporation Location Number of Skilled Nursing Beds Number of Behavorial Care Beds Number of Assisted Living Units/Apartments St Maries Campus St Maries, Idaho 7 ¹ 7 ¹ Valley Vista Care Center of Sandpoint Sandpoint, Idaho 8 ² 5 ² Vista Assisted Living Community Rupert, Idaho 8 Antelope Creek Residential Care Darlington, Idaho 5 ³ ¹ The St Maries Care Center has 7 licensed skilled nursing beds divided into a skilled nursing unit and a behavorial care unit ² The Sandpoint Care Center has 7 licensed skilled nursing beds divided into a skilled nursing unit and a behavorial care unit ³ Antelope Creek provides residential care for residents with mental illness and developmental disabilities Introduction FY07

2 Valley Vista Care Comparative Statement of Net Assets September 0, 07 FINAL ASSETS Valley Vista Obligated Group Valley Vista Care Corporation Vista Community Housing Corp Foundation 9/0/07 9/0/06 Incr (Decr) 9/0/07 9/0/06 Incr (Decr) 9/0/07 9/0/06 Incr (Decr) 9/0/07 9/0/06 Incr (Decr) Current Assets Cash & cash equivalents,67,75,86,99 (9,55),9,08,,9 (,90) 8,7,90 (5,6) 5,85,677,75 S-T Investments less cash equivalent,605,,5,999 9,5,605,,5,999 9, ,779 96,5 5,8 5 Accounts Receivable, net,06,8,06,805 (7,56),055,0,095,76 (0,06) (8,98) (,57),589 6 Inventories 8,6 90,50 (8,77) 8,6 90,50 (8,77) Prepaid expenses 7,07,56 (5,58) 7,07,56 (5,58) Total Current Assets 7,008,0 6,986,799,5 6,998,965 6,97,880,085 9,5,99 (,57) 7,6,08 6,60 9 Assets limited as to use 0 Bond Repair and Renovation Fund Bond Cost of Issuance Bond Interest 56,755 57,5 (758) 56,755 57,5 (758) Bond Principal,9,96,795,9,96, Bond Debt Reserve Fund,066,589,067,686 (,097),066,589,067,686 (,097) Restricted Cash - Resident Trust 65,09 6,50,959 65,09 6,50, Total Assets limited as to use,6,7,608,8,900,6,7,608,8, Property and Equipment 9,,9 8,90,66,5 7,87,7 7,6,95 85,7,,795,79,65 5,59 8 Less accumulated depreciation (9,896,75) (9,0,85) (666,59) (9,09,05) (8,686,08) (6,0) (587,69) (5,58) (,6) 9 Net Property & Equipment 9,5,67 9,690,75 (5,08) 8,58,066 8,955,68 (7,0) 77,0 75,007 (7,907) 0 Other Assets Other Intangible, less accum amort Total Other Assets Total Assets 7,875, 8,86,09 (0,798) 7,8,775 7,59,09 (00,7) 76,6 76,97 (0,8) 7,6,08 6,60 Balance Sheet-Assets Page

3 Valley Vista Care Comparative Statement of Net Assets September 0, 07 FINAL Valley Vista Obligated Group Valley Vista Care Corporation Vista Community Housing Corp Foundation 9/0/07 9/0/06 Incr (Decr) 9/0/07 9/0/06 Incr (Decr) 9/0/07 9/0/06 Incr (Decr) 9/0/07 9/0/06 Incr (Decr) LIABILITIES & NET ASSETS 5 Currents Liabilities 6 Accounts payable,6,0,5,9 9,60,,,5,8 9,99,789,585 (796) 7 Medicaid payable Accrued interest 9,97 98,8 (6,77) 89,55 95,5 (5,99),66,80 (87) 9 Current maturities of LT debt 55,8,6,598 99,6 78,7 0,689 56,66 6,75 (7,09) 0 Total Current Liabilities,09,87,99,80 99,0,0,760,95,66 07,098 6,067 69, (8,07) Resident Trust Fund Liability 65,09 6,50,959 65,09 6,50, Bond income-monitized deferred 9,56 5,96 (,850) 9,56 5,96 (,850) LT debt, less current maturities,85,98,0,06 (55,88),566,59,865,756 (99,6) 78,60 5,80 (56,676) less unamortized debt issuance costs (5,88) (69,057),569 (,56) (67,86),8 (9) (,67) 77 5 Bond premium, net,5,65 (,0),5,65 (,0) Net Long-term Liabilities,,,755,6 (,98),,55,,0 (77,70) 77,680,608 (55,98) 7 Deferred revenue,55 6,9 (0,9),55 6,9 (0,9) Net Assets,879,050,9, (5,9),8,5,587,67 (05,95) 97,699,77 5,5 7,6,08 6,60 9 Total Liabilities and Net Assets 7,875, 8,86,09 (0,798) 7,8,775 7,59,09 (00,7) 76,6 76,97 (0,8) 7,6,08 6,60 0 Current Ratio indicates degree of liquidity: a higher number indicates good cashflow. Debt to Total Assets Ratio indicates degree of solvency: a lower number indicates assets are financed with equity rather than debt. LT Debt to Net Assets Ratio determines ability to incur add'l debt: a lower number indicates favorable lending conditions. a higher number indicates newer acquisitions. Balance Sheet-Liab & Net Assets Page

4 Valley Vista Care Statement of Operations For the Twelve Months Ended September 0, 07 FINAL Valley Vista Obligated Group Budget Valley Vista Care Corp Vista Community Housing REVENUE Private,0,88.8%,09,57 0.6% 8,77 0.5% less Charitable Assistance (8,8) -0.% (8,065) -0.% (,79) -.5% 5 * Medicaid,9,9 75.6%,9, % 0.00% 6 Medicare,90, %,90, % 0.00% 7 Other,0,0 6.98%,0,0 7.05% 0.00% 8 Total operating revenue 9,0, % 9,505, % 9,09, % 8, % Revenue variance (0,77) -.56% 9 EXPENSES 0 Administrative,87,786.%,,.0%,76,0.9%,66 6.6% Maintenance 59,95.09% 558,97.87% 550,576.89%,70.89% Dietary,0,6 7.0%,7, %,0,6 7.7% 0.00% Housekeeping 0,80.77% 5,968.7% 0,80.79% 0.00% Laundry 8,55.9% 0,878.% 8,.0% 0.8% 5 * Patient care 7,767, 0.5% 7,7,67 8.8% 7,767, 0.8% 0.00% 6 Behavior management,75,66.%,00,6 5.8%,75,66.8% 0.00% 7 Therapy,09, %,, %,09, % 0.00% 8 Social services, % 7, %, % 0.00% 9 Resident activities 86,58.0% 59,70.8% 86,58.0% 0.00% 0 Transportation 08,5 0.56% 9, % 08,5 0.57% 0.00% Medical records 69, % 8,89 0.9% 69, % 0.00% Bad debt 60,8 0.%,700 0.% 60,8 0.% 0.00% Property tax & insurance 7,5 0.9% 6, %,76 0.7%,075.5% Utilities,78.5% 99,80.05%,99.7% 9, % 5 Depreciation 76,779.79% 76,6.8% 68,.59%,6.9% 6 Realized (gain) loss on asset (sale) disposal,59 0.0% %,59 0.0% 0.00% 7 Total expenses 8,60, 96.88% 8,60,7 95.7% 8,80, %, % Expense variance (,09) -0.0% 8 Operating Income 598,9.% 90,686.6% 59,70.8% 59,77.9% 9 OTHER INCOME (EXPENSE) 0 Contributions 0, % % 0, % 0.00% Interest & dividend income 8,07 0.5%, % 8,06 0.5% 0.0% Interest & debt issuance expense (offset w/ Monetized Bond Fund (807,657) -.% (78,795) -.0% (790,596) -.6% (7,06) -9.0% Rental income (expense),700 0.%, %, % 0, % Realized gain (loss) on investments,85 0.0% 8, %,85 0.0% 0.00% 5 Unrealized gain (loss) market adj 55,77 0.9% % 55,77 0.9% 0.00% 6 Retroactive rate adjustments 6, % % 6, % 0.00% 7 Total other income (expense) (65,5) -.9% (709,795) -6.8% (65,085) -.9% (6,50) -.% 8 EXTRAORDINARY INCOME (EXPENSE) % 0.00% % 9 INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS (5,9) -0.7% 9, % (05,95) -0.56% 5,5 9.8% 0 * Medicaid Rate Recovery included in Net Assets above: UPL Revenue :,667,50 P-Tax Expense: 697,98 Net Impact :,969,5 Stmt of Operations Page

5 Valley Vista Obligated Group FINAL Revenue by Type of Service FY07 Communities St Maries Campus 8,96,760 7% Valley Vista Care Center Sandpoint 8,79,5 % Rupert Assisted Living Campus 8,96 % Antelope Creek Residential Care 5,989 % Community-based Services 8,95 % 9,0,8 00% Payor Mix FY07 Private,0,05 % Medicaid,9,9 75% Medicare,90,797 7% Other,0,0 7% 9,0,8 00% Revenue Statistics-Payor Mix Page

6 Valley Vista Obligated Group Financial Ratios FINAL as of //06 //07 6/0/07 9/0/07 9/0/06 9/0/05 9/0/0 9/0/0 Long Term Debt Service Coverage Increase (decrease) in unrestricted funds 55,0 (6,70) (9,67) (5,9) 57,669 5,56 99,56,888,60 Add: Unrealized market adj loss 9,67 69,65 0,6 Subtract: Unrealized market adj gain (9,97) (,7) (55,77) (8,95) (9,596) 5 Add: 6 Depreciation expense 8,07 69,9 559,506 76,779 75,8 75, 67, 59,880 7 Interest & debt issuance expense 99,5 9,08 588,99 807,657 80,08 8,05 80,98 86,505 8 Income Available for Debt Service 7,05 679,7 967,0,6,6,98,5,0,67,778,,55,67 9 Actual Debt Service Principal/Interest pmts + Trustee fees 86,5 57,78 88,775,68,80,87,9,89,00,90,07,95,05 0 Long-Term Debt Service Coverage Required.0 Days Cash on Hand Daily operating expense 7,8 8,70 8,9 8,809 6,07,96,88,005 Cash - excl investments,,,99,990,9,9,67,75,86,99,87,90,55,986,55,79 5 Days Cash on Hand Required 5 days - Bond Cash - incl investments 5,9,0 5,59,88 5,0,07,77,60,699,98,6,7,55,986,55,79 7 Days Cash on Hand Required 5 days - Bond Long-term debt service ratio measures total debt service coverage (interest plus principal) against annual funds available to pay debt service. The ratio does not take into account positive or negative cash flow associated with balance sheet changes but rather uses net income as a benchmark. Higher values indicate better debt repayment ability. Days cash on hand measures the number of days of average cash expenses that are retained in cash or cash equivalents. It is a measure of total liquidity, both short-term and long-term. An increasing trend is a positive indicator. We are required by the bond covenants to increase days cash on hand a minimum of days per year until we have reached 60. Long-term Debt Service Coverage Ratio and the number of Days Cash on Hand measurements are lending covenants. Actual unrestricted cash as of 9/0/07 $,67,75 Minimum days of unrestricted cash 60 8,809 expense/day = $,98,57 Excess (Shortage) of unrestricted cash $ 8,858 Desired days of unrestricted cash 75 8,809 expense/day = $,660,66 Excess (Shortage) of unrestricted cash $ (9,7) DSCR-DCOH Ratios Page 5

7 Valley Vista Care Corporation Rates Location St Maries Campus Unit/Level of Care Units/Beds 07 Rates Rent Personal Care* Skilled Nursing Private 0 beds $65 - $85/day all inclusive Semi-Private 7 beds $50 - $70/day all inclusive Behavioral Care Secured Private 7 beds $60 - $580/day all inclusive Unsecured Semi-Private 0 beds $5 - $565/day all inclusive *Cottage Care Assisted Living Private units $,00/month Semi-Private 8 units $90/month $,500 - $,000/month *The Apartments Private 0 units $,6-$,086/month Semi-Private 5 units $977/month Low-income units $788/month $700 - $,50/month Valley Vista Care Center of Sandpoint Rupert Vista Assisted Living Community Antelope Creek Residential Care All rates quoted are for Private Pay and include meals/day Skilled Nursing Private beds $65 - $85/day all inclusive Semi-Private 7 beds $50 - $70/day all inclusive Behavior Care Secured Private beds $60 - $580/day all inclusive Secured Semi-Private beds $5 - $565/day all inclusive *Assisted Living Private units $95 - $,00/month $795 - $,885/month Semi-Private units $87 - $867/month Duplex units N/A Residential Care Private 6 units $,900 - $,000/month all inclusive Semi-Private 9 units $,800/month all inclusive *Personal Care is charged out at $0.5/hour Rates Page 6

8 FINAL Beds/Units Monthly # Actual Monthly % YTD # Actual YTD % Monthly Average YTD Average YTD % Budget Budget % Patient Days Actual Occupancy Patient Days Actual Occupancy Patient Days Patient Days Average Occupancy Patient Days Budget Occupancy Beds St. Maries NH 7 7.0% 5.% 86.%.% % 7% Private 7, % 6% Private - Behavior Insurance Medicare - Behavior Total,9 87%,08 85% % 6 86% 5 7 Insurance - Behavior Medicaid - Behavior , Medicaid Medicare ,550, % Beds Private Medicare Medicaid VA, Ins Sandpoint NH 7 6.8% % 6.% 7% 75.%.9% 6% Private 5, % 5 Private - Behavior VA & Insurance - Behavior VA & Insurance Medicaid 57 57,95 6, Medicaid - Behavior 905 0, Medicare 90,5 9 Medicare - Behavior % 0 Total,880 86%,5 85% % 6 88% Units Valley Vista Care Corporation Census Occupancy YTD As of September 0, 07 SM Cottage Care NHs ACTUAL 7% 6% 8% 7% Total 09 86%,677 8% 0 0 8% 0 87% NHs BUDGET 5% 6% 77% % VARIANCE.% -0.5%.5% -.% SM Apartments 9 Total 0 7%,57 6% 6% 7 89% Beds 5 Rupert 9 6 Private 688 8,9 7 Other - Duplex Total 78 86% 9,0 85% % 6 90% Beds 9 Antelope RALF 5 0 Total 780 7% 8,696 68% 6 68% 8 80% Private Private YTD Average % by Pay Source Medicare Medicare Medicaid Medicaid Insurance VA, Ins Utilization-Census Page 7

9 Management s Discussion and Analysis of Operations as of September 0, 07 Results of Operations for the Fiscal Year Ended September 0, 07 Compared to the Fiscal Year Ended September 0, 06 For the fiscal year ended September 0, 07 the change in total unrestricted net assets decreased from a net gain of $57,669 to a loss of $5,9, an decrease of $590,06 over the fiscal year ended September 0, 06. As previously reported, these financial results reflect a decision to address staffing shortages, similar to shortages experienced throughout the industry, and increase retention with a company-wide pay scale increase for all of Valley Vista s caregivers. This workforce investment was designed to foster excellent care and retain quality employees in an increasingly competitive labor market. Consistent profitability in previous periods justified the anticipated increase in expenses. At the same time, the Valley Vista experienced a decline in census, which was directly attributed to staff turn-over in key positions and staff shortages. The benefits from this investment will take time to realize; but, management is confident this investment will return future financial results to more historical levels. A breakdown of revenue and expense components follows: Revenues Operating revenue increased % overall from $8,87,50 to $9,0,8 in fiscal year 07 over fiscal year 06. Operating revenue for the St Maries campus decreased %, whereas Sandpoint s increased 5% in the year ended September 0, 07. Antelope Creek s operating revenue increased 6%. Rupert s remained the same. Valley Vista experienced a shift in pay sources during fiscal year 07 as follows: Private pay increased %, Medicaid increased %, and Medicare increased %. Other funding from grants, private insurance, and VA decreased 7%. Investment income comprised of interest, dividends, and realized gains increased 8% in value from $6,67 in the year ended September 0, 06 to $0, in the year ended September 0, 07. Net unrealized gains on investments decreased % from $8,95 in the year ended September 0, 06 to $55,77 in the year ended September 0, 07. Contributions increased 88% from $5,60 in the year ended September 0, 06 to $0,59 in the year ended September 0, 07. Charitable assistance (included with resident services revenue) increased a modest $5,89 or 7%, from $78, in fiscal year 06 to $8,8 in fiscal year 07. Rental income increased 7% due to agency nurses occupying a unit in the St Maries Apartments for most of the year. Retroactive rate adjustments decreased 6% for the year ended September 0, 07, from the prior fiscal year, bringing this figure in line with historical results. Valley Vista s last fiscal quarter coincides with the first quarter of the state s new fiscal year, which results in a Medicaid retroactive rate adjustment every year.

10 Expenses Operating expenses increased $9,685 or 5% from $7,677,558 in fiscal year 06 to $8,60, for the year ended September 0, 07, due to a wage scale revision, which increased wages an average of 5% effective September, 06. The wage scale already incorporates % incremental increases. Thus, during the transition year this had the potential of increasing wage expense by 8%. The last adjustment made to the wage scale was in 0. This increase primarily affected direct care wages in patient care, behavior management, activities, and social services rather than administrative pay increases. In addition, we hired two additional speech therapists, a service that we previously contracted out for minimal service levels. Expanding speech therapy services increased revenue over $0,000. Indirect care expenses in dietary, laundry, and housekeeping decreased 5% in the year ended September 0, 07 over fiscal year 06. Laundry and housekeeping services are contracted, and not subject to the wage scale revision. Dietary s food costs were lower during the year ended September 0, 07 compared to the year ended September 0, 06. Transportation increased % from $95,05 in fiscal year 06 to $08,5 in fiscal year 07 due to expanded services. Utility costs increased 0% from $9,9 to $,78 for the year ended September 0, 07 compared to the previous year due to more severe winter conditions. Administration expenses includes a Centers for Medicare and Medicaid Services ( CMS ) Civil Monetary Penalty (CMP) of $67,75 levied against the St. Maries Nursing Home, resulting in a 6% increase in costs during the year ended September 0, 07 over the year ended September 0, 06. The CMP was levied as a result of a state survey following the retirement of Valley Vista s longtime Director of Nursing Services in the St. Maries skilled nursing facility. The transition in key personnel caused documentation and process errors to the extent survey results were impacted. This facility, along with the Sandpoint skilled nursing facility, received excellence-in-service awards for several years prior to this transition. The Sandpoint skilled nursing facility continues its excellent survey performance and Valley Vista expects the St. Maries skilled nursing facility to return to its previous level of performance in the near future. Bad debt increased 5% from $,77 to $60,8. The increase is primarily due to two provider liable Medicare stays in St Maries. A provider liable stay is one where the resident did not meet the qualifying stay or transfer criteria. Cash Flows Cash and investments decreased $9,55, or %, from a total balance of $,86,99 at September 0, 06 to a total balance of $,67,75 at September 0, 07. $5,566 of this decrease stemmed from a decrease in the money market portion of our investment account. Thus, the investments increased $86,669, or 6%, in value in the year ended September 0, 07 from the year ended September 0, 06. The Medicaid rate recovery payment, otherwise known as the Upper Payment Limit ( UPL ), received in FY07 totaled $.655 million compared to the $.775 million received in FY06. The assessments are calculated and paid according to Idaho s fiscal year

11 beginning July st. Thus, 5% was recognized in fiscal year 06 and 75% was recorded as revenue in fiscal year 07. Conversely, Valley Vista only paid out $695,86 in Provider Tax (P-tax) in the first month of FY07 compared to $79,99 in FY06. The net effect of the UPL and P-tax resulted in a decrease in cash of $95,5, or 5%, in the year ended September 0, 07 from the year ended September 0, 06. It s important to note when analyzing our interim balance sheets that the UPL payment is received and the provider tax paid in a lump sum during the first month of the fiscal year. The decline in cash as the year progresses illustrates how this program is used to supplement cash generated from operations. In FY07, we spent $8,090 for capital improvements and equipment including railing and flooring in St Maries, smoking huts in St Maries and Sandpoint, bariatric beds and a shower room remodel in Sandpoint, wireless networks in Rupert, Antelope, and Mackay, flooring and new furniture in Rupert and Antelope, and a new vehicle (80% was reimbursed by grant funding). After accounting for disposals of $6,89, the net increase in property and equipment was $,5. Census Census only decreased % over all of the facilities in the fiscal period ended September 0, 07 over the previous fiscal period ended September 0, 06, which was anticipated as 06 was a leap year. St. Maries Nursing Home decreased %, or 98 total census days. Insurance stays, which decreased 75%, shifted mostly to Private stays, which increased 5%. St Maries SNF s behavior occupancy decreased 779 days or 7% while skilled increased 58 days or 5%. This shift resulted from an emphasis on rehab services in marketing efforts, which shows in the 7% increase, or 8 days, in Medicare census. There was little change in Medicaid census. St Maries SNF s averaged 65 residents for the month of September 07, and 6 residents for an 85% average occupancy rate in the year ended September 0, 07. Sandpoint s census decreased by 67 days, mostly due to a 6% decrease or,56 days in VA and Insurance stays. Their behavior occupancy remained the roughly same, increasing only 5 days, while skilled decreased % or 9 days. There was a % or 77 days increase in Medicare stays and 7% or,5 days increase in Medicaid census. Sandpoint s census averaged 6 residents in September 07 and 6 residents, for an 85% average occupancy rate in the year ended September 0, 07. Cottage experienced an increase of 80 days or 0% in their occupancy in the year ended September 0, 07 from the year ended September 0, 06 and was at 86% in September 07. Although census decreased by 8%, or 956 days, in the Apartments, its occupancy rate increased to 7% in September 07. Rupert Assisted Living s census was consistent with an occupancy rate of 85% throughout the fiscal year. Antelope averaged an occupancy rate of 68% for the year ended September 0, 07, but gained residents in the last quarter to an average of 6 residents, or 7% occupancy, in September 07. Assisted living stays tend to be longer term and, as such, require more effort to fill when vacancies occur. Ratios Our L-T Debt Service Coverage was.x and our Days Cash on Hand was 98 as of September 0, 07.