By Pat Davis
Director in Residence, Riderwood Board of Directors
In the October Reporter, I described Riderwood’s annual budget formulation process beginning with resident, RAC, and departmental input during the summer; then corporate review to assure consistency with the Erickson model and policy, expert research input, and finally Community Relations Committee (CRC) review. Here is how the process continued.
In the early fall Riderwood submitted its final budget proposal for the coming year, along with required schedules and exhibits. Erickson Living regional leaders then presented our and other communities’ budget packages to the Corporate Executive Team for approval. By mid-October Erickson leadership submitted all budget materials to the Budget and Finance Advisory Committee of National Senior Campuses, which had to approve them as well as the Central Services allocation for the coming year.
The entire process culminated last week in Baltimore when all Directors from across the country met for our annual forum. At that time the Riderwood Board of Directors met to approve our budget for next year. Later this month, all residents will receive a letter from management detailing the percentage changes in Monthly Service Packages for residents in Independent Living, Assisted Living, and Skilled Nursing along with the 2019 Ancillary Fee Schedule.
The final step will take place at a Resident Town Hall meeting on Friday, December 7, when the CRC and management team will present the financial plan for the coming year. The presentation will include the underlying assumptions, will compare our costs to those of our competitors, and will discuss how financial and other important decisions are made.