Hospital Foundation Care Home Achieves Surplus Amid Renovations and Staffing Shortages
The Hospital Foundation's care home in Kaufbeuren has reported a positive financial outcome for 2024, despite ongoing building renovations, a reduction in available beds, and persistent challenges in staffing. According to the latest annual report presented to the city council, the facility managed to maintain fiscal stability while modernizing and expanding its infrastructure.
Throughout 2024, extensive construction projects aimed at updating and enlarging the care home led to decreased capacity. The number of operational beds was temporarily reduced as sections of the facility were closed for renovations and fire safety improvements. During this period, the home's management strategically converted up to 15 beds for short-term care, helping offset the loss of regular capacity and contributing to the overall occupancy rate of 96%.
The institution's ability to remain profitable was attributed to careful financial management and successful negotiations with funding authorities regarding care rates. While several planned renovation measures were delayed, the facility maintained high occupancy, though a handful of beds could not be filled due to resident turnover, ongoing construction, and a notable rate of staff absenteeism.
The adaptations in capacity were reflected in the care home's service contracts, which were adjusted from 190 to 180 beds to accommodate the construction schedule. On average, 173 residents were accommodated throughout the year. Relocation of residents within the building was necessary to facilitate fire safety upgrades, resulting in temporary restrictions on the availability of new placements.
Despite these operational constraints, the facility's financial health remained robust. The annual balance sheet grew by approximately 2.5 million euros to a total of 17.65 million euros, largely due to secured government funding earmarked for modernization and new construction. The equity ratio improved significantly, and liquidity was bolstered through strategic reallocation of assets. Operating revenues increased by 4%, although other income sources declined following the cessation of pandemic-related financial support for nursing facilities. Staff costs rose by 5% in response to wage increases implemented in March 2024, while planning and consulting expenses for the expansion project totaled nearly 760,000 euros for the year.
Staffing challenges persisted, although the competitive landscape for nursing professionals showed slight improvement. The care home managed to comply with legal staffing requirements, but the total workforce declined in line with reduced bed numbers. The management reported that temporary staff shortages were mitigated by adjusting leave and overtime schedules, but cautioned that extended construction delays could jeopardize this approach.
Securing and retaining qualified personnel remains a primary concern for the facility's leadership, who emphasized its importance for long-term operational stability. The management continues to focus on employee retention and recruitment strategies to ensure continued quality care for residents during periods of transition and beyond.