Transcript Generated by AI 00:01 Hey, 00:01 Mark Parkinson back with Park Place and very excited to be 00:05 doing another Let's Talk segment sponsored by Prevail by First Quality. 00:10 Hopefully you know by now that Let's Talk is a 00:12 monthly segment where we interview a superstar in the sector, 00:15 somebody that's accomplished a lot and that we 00:17 can learn from and celebrate what they've done, 00:19 and we certainly have a superstar today in Bernie McGinnis, 00:22 who's come here 00:23 to be live in our studio. 00:25 So we have really good production quality for this. 00:27 The exciting thing about Bernie, 00:29 it really, 00:30 it's, 00:30 it's, 00:30 it's his whole career, 00:31 but what we really want to focus on is the last couple of years because incredibly, 00:36 in 2 years he started and founded Journey 00:39 along with his partners. 00:40 He's the CEO 00:42 and he's grown it from 1 building to 43 buildings in less than 2 years. 00:47 And 00:47 when you hear that, 00:48 you might say, 00:48 oh, 00:48 that's a recipe for disaster. 00:50 I wonder if somebody's just going in and slashing 00:52 costs and trying to churn a bunch of buildings. 00:54 That's not what Journey has done at all. 00:56 They haven't cut costs. 00:57 They've increased spending in these buildings, 00:59 but they've increased it in the right way, 01:01 and they've gotten remarkable results that we'll, 01:03 we'll hear about and hopefully learn from Bernie how he was able to achieve. 01:08 So Bernie, 01:08 thanks a ton for coming up to our studios. 01:10 Thanks for having me. 01:11 I mean, 01:11 it's a great studio. 01:12 It's not easy to get here, 01:14 so we, 01:14 we appreciate you making the effort, 01:16 uh, 01:16 and I can't tell you how excited we are to talk with you on Let's Talk. 01:20 I appreciate the invitation. 01:22 Excited to. 01:23 You know, 01:23 jump right in and I'll try and live up to that superstar billing. 01:27 That's very humbling. 01:28 I'm sure you will. 01:29 Now, 01:30 before we talk about your why, 01:32 typically I'd ask a guest what's their why? 01:33 What is it that motivates you? 01:35 I think for people to really understand your why, 01:37 they need to understand where you came from. 01:39 So 01:40 let's, 01:40 let's talk about how you got into long-term care. 01:42 I don't think long-term care was always a plan. 01:44 Your, 01:44 your plan was to be a teacher, 01:46 and then that got diverted. 01:47 Tell us about that. 01:48 Yeah, 01:48 absolutely. 01:49 I, 01:49 I went to Ball State University in Indiana. 01:52 I grew up in the Hoosier State and 01:54 always always wanted to be a teacher. 01:55 I thought I'd coach sports, 01:57 you know, 01:58 give back. 01:59 Working in an office, 02:00 a desk job never appealed to me, 02:02 right? 02:02 So. 02:03 But I was working, 02:04 um, 02:04 at a camp for the handicapped. 02:07 Um, 02:07 it was an Easter Hill Society camp in, 02:10 uh, 02:10 Yorktown, 02:11 Indiana, 02:12 and went there 02:13 one summer, 02:14 job, 02:15 didn't have to move home, 02:17 uh, 02:17 and just 02:18 the, 02:19 the camp nurse kind of took me under her wing. 02:21 Her name was Sandy and introduced and 02:23 I was a camp counselor taking care of ages 8 to 68 02:27 for our campers in, 02:29 in different weeks and 02:31 I just fell in love with it, 02:32 fell in love with 02:34 taking care of, 02:35 of those campers, 02:36 and the nurse took me under her wing and said, 02:38 hey, 02:39 can I have a gift for this? 02:40 You have a knack here. 02:42 Is this something you've ever considered? 02:45 So I went and became a CNA in Yorktown, 02:47 Indiana, 02:48 uh, 02:49 did my CNA classes there, 02:51 and 02:52 just fell in love with long-term care, 02:55 you know, 02:55 working the evening shift. 02:58 Just, 02:58 it was such an incredible experience. 03:00 Went back to that camp the next summer as the program director, 03:04 um, 03:05 working there, 03:06 working alongside 03:07 the 03:07 same nurse, 03:09 um, 03:09 and just 03:11 reinforced my passion for taking care of people. 03:15 And so some people say, 03:16 oh, 03:16 journey, 03:16 they're, 03:17 they're growing too fast. 03:18 This is a 2-year thing. 03:19 This actually started 30 years ago and when you started as a CNA in a nursing home, 03:24 absolutely. 03:24 In 1997, 03:26 uh, 03:26 I was doing my CNA courses and eventually you became an administrator. 03:31 I did. 03:31 I made a pit stop and became a nurse first, 03:34 um, 03:34 so I, 03:35 after I left the second summer, 03:37 I enrolled in nursing school in Anderson, 03:40 Indiana, 03:40 and I was working for a large national company, 03:43 HCR Manor Care at the time, 03:44 and, 03:45 um. 03:46 I was a, 03:47 I became an LPN. 03:48 I'm still a nurse in the state of Indiana, 03:50 and then went back and did my AIT there, 03:54 um, 03:54 under the guidance of Mike Perry, 03:56 actually another CEO in the Midwest, 03:59 and, 03:59 uh, 04:00 gave me that opportunity to be in AIT, 04:02 um, 04:03 at HCR Manor Care and became an administrator. 04:06 I think it's critical that in your success that 04:08 you've spent a lot of time in buildings. 04:10 So from the time that you started as a CNA 29 years ago, 04:14 how long, 04:15 how many years were you 04:16 in a CNA, 04:17 a nurse, 04:17 or an administrator actually in buildings on the floor in these buildings? 04:21 About 9 to 10 years, 04:22 almost a decade. 04:23 Um, 04:24 I worked the floor as CNA, 04:26 nurse, 04:27 unit manager, 04:28 assistant administrator, 04:30 administrator, 04:31 ran a large campus, 04:32 went to a growing organization. 04:35 Kind of turnaround facilities, 04:37 um, 04:38 ran a couple of buildings for them before I got that first regional position. 04:42 I mean, 04:42 I think that's really critical because you spent 9 or 10 years knowing exactly 04:46 what's going on in a building, 04:48 knowing what it's like to work in a building, 04:50 what the residents need and, 04:51 and all of that. 04:53 Did that help then form your why? 04:54 What is your why? 04:55 What, 04:55 what is it that motivates you in life? 04:57 What gets you up in the morning? 04:58 It's the people, 04:59 the people I've met 05:00 on my journey, 05:02 pun intended. 05:03 Um, 05:04 you know, 05:04 this career has given me so much, 05:06 but it's the stories. 05:08 The staff that I've 05:09 met that started as activity assistants or CNAs that today are 05:13 registered nurses 05:15 or the residents that I've been able to take care of and get to know them, 05:19 their family members, 05:20 hear their stories. 05:21 You know, 05:22 I've seen you interact with your CNAs, 05:24 and it's really a very special thing to watch. 05:26 Tell us, 05:26 tell us your, 05:27 your view of the CNA profession and, 05:29 and what we need to be doing for them. 05:31 I think the CNAs are the backbone of our profession, 05:34 and we need to be pouring into the CNAs, 05:37 finding out what makes them tick, 05:38 what are their barriers to coming to work, 05:40 how can we support them? 05:42 How do we make their jobs easier at work, 05:44 listening to their feedback. 05:46 In real time 05:48 helps us become more efficient in operations 05:50 and helps us deliver better care to the residents. 05:53 I just think the role of the CNA is, 05:55 is vital to our profession. 05:58 OK, 05:58 so after you spent your time as a CNA, 06:01 a nurse, 06:01 and administrator, 06:02 then for the next 15 or so years in your career 06:05 you were like an executive with the nursing home companies, 06:09 still working but not 06:11 in the buildings every day. 06:12 Yeah, 06:12 I, 06:13 so I became a regional, 06:14 had the opportunity. 06:16 Work under, 06:16 you know, 06:17 a gentleman named Jason Buck became a regional operator for, 06:21 um, 06:22 American senior communities in Indiana 06:24 and went from 4 buildings and over the next, 06:27 you know, 06:28 8 years as a regional, 06:29 I left there as the senior vice president of operations. 06:32 I'd helped them 06:33 on board, 06:34 you know, 06:35 close to 40 some buildings. 06:37 As they grew as an organization when I left, 06:40 they had 06:41 close to 80 facilities throughout the state of Indiana. 06:44 Um, 06:44 and I'd seen, 06:45 you know, 06:46 4 buildings, 06:47 9 buildings, 06:47 16 buildings, 06:48 26, 06:49 64, 06:50 um, 06:51 and, 06:51 um, 06:52 had brought on, 06:52 you know, 06:53 a division 06:54 right before I'd left, 06:55 uh, 06:56 the organization, 06:57 and then had the opportunity to become a COO and do some multi-state, 07:02 um, 07:02 a growing company out of Illinois expanding into Indiana, 07:06 helped them with some acquisitions. 07:09 It was a mom and pop company, 07:10 you know, 07:11 smaller, 07:11 very different. 07:13 World. 07:14 So I got to see more of the financing side, 07:16 bank relationships, 07:17 RI relationships, 07:18 right? 07:19 Um, 07:20 more into the COO role. 07:21 And then that led me to an opportunity as my first CEO 07:25 role for a New York real estate developer, 07:27 um, 07:29 David Marks gave me an opportunity to, 07:31 to form Majestic Care 07:33 as one of the co-founders and CEO and I was there for 5 years, 07:37 helped that organization grow to 47 locations throughout 4 states in the Midwest. 07:42 Uh, 07:43 super proud of what we achieved because COVID hit 07:46 when we were 18 months old 07:48 as an organization. 07:49 And I saw a lot of very mature organizations went through with COVID, 07:53 but with the support of ownership 07:55 and the commitment to care, 07:57 we didn't just survive COVID. 07:58 I, 07:59 I felt like we thrived during COVID and 08:02 continued growth, 08:03 support to our facilities, 08:04 ensuring they had PPE investment back into the buildings. 08:08 So I was there for 5 years, 08:10 great people, 08:11 incredible experience. 08:13 Um, 08:13 just felt it was time to pursue actual ownership, 08:16 and that led me to Journey. 08:17 So at that point you'd had 08:19 27 years in the sector. 08:21 You've done about everything except you hadn't been an owner, 08:25 and, 08:25 and with Journey 08:27 you said, 08:27 OK, 08:27 maybe it's time to, 08:29 to take the leap and actually 08:31 become an owner. 08:32 So 08:33 that was less than 2 years ago. 08:35 You, 08:35 you, 08:35 you somehow you figured out how to get one building. 08:38 How, 08:38 how did you form journey and how did you get your first building? 08:41 So 08:41 through relationships, 08:42 you know, 08:43 one of our fellow, 08:44 um, 08:45 investors, 08:46 owners, 08:47 um, 08:47 introduced me to co-owner, 08:49 um, 08:50 Sam McCabas, 08:51 and 08:53 through conversation felt like we shared. 08:55 You know, 08:56 the same vision, 08:57 the same idea that 08:58 you can take care of our staff and we can take care 09:01 of our residents in the right way and build a very successful 09:05 organization 09:05 and through our contacts 09:07 felt like that would lead to some opportunities where people 09:10 are looking for a quality operator. 09:12 They're looking for someone who's going to invest in these facilities, 09:17 maybe struggling one-star facilities, 09:19 older physical plants, 09:21 whatever the struggles may be. 09:23 Um, 09:24 especially in markets in which I had operated, 09:26 I felt like we had a 09:28 pretty good chance to 09:29 pool our resources and bet on ourselves. 09:32 And so the three of us 09:33 formed journey, 09:34 and that led us to our first facility. 09:37 And, 09:37 and I'm gonna tell the end, 09:39 and then we're gonna go back and talk about how you've done it, 09:42 because once people hear this end, 09:43 they're gonna want to try, 09:44 try to figure out how you've done it. 09:45 So you started out with that one, 09:47 less than 2 years ago. 09:49 You'll soon be at 43 buildings. 09:51 And what's happened in these buildings is 09:54 that 09:54 when you come in, 09:55 you've invested money in them, 09:56 you haven't cut costs. 09:58 When you come in, 09:59 you've taken agency down to 0. 10:02 In the buildings that you've had for any length of time, 10:04 you've taken occupancy to over 90%. 10:07 Your average quality measure 5-star score has gone up 1 10:11 total, 10:12 uh, 10:12 quality measure point, 10:13 which is pretty remarkable. 10:15 That's an amazing thing to have accomplished in less than 2 years. 10:19 So let's talk about how it was possible. 10:22 What was the vision for journey when, 10:24 when you and your partners got together? 10:25 What were you, 10:26 what were you thinking? 10:27 What, 10:27 what did you want this to be? 10:28 We wanted to be different. 10:30 We wanted to be known as a good quality operator. 10:33 We wanted opportunities in which we thought we could bring value. 10:38 Can we improve the lives of the residents? 10:40 Can we make 10:41 working here better for the staff? 10:43 And are we coming in with the right deal structure 10:46 in which we can invest some caps into these facilities? 10:50 So how did you get your first building? 10:52 Off-market deal through a relationship, 10:55 um, 10:55 an aging owner 10:57 didn't want to sell to a big company. 10:59 She had heard that I was an Indiana operator and it's a little 39 bed, 11:04 one hallway, 11:05 only Medicaid. 11:06 Um, 11:06 they had no EMR, 11:08 no internet, 11:09 you know, 11:10 old punch time card, 11:12 um, 11:12 and 11:13 truthfully, 11:14 she knew someone needed to purchase this facility or, 11:17 Here's a facility, 11:18 no facility for about 15 to 20 miles around it, 11:22 um. 11:24 Wouldn't be there 11:25 and so we took that opportunity 11:27 we've invested 11:29 money into that building, 11:30 you know, 11:31 put in full point click care and EMR and 11:34 updated HRIS and time system and we've, 11:37 you know, 11:38 put some money into the physical plant, 11:40 updating shower rooms and dining rooms and 11:43 leadership and training of our staff and. 11:45 A building, 11:46 you know, 11:46 in the 4th quarter of last year was 100% full for like 63 days. 11:51 We eliminate agency in 90 days in that facility, 11:54 and 11:54 it's fully functional and it's thriving. 11:57 We have a great leader there. 11:58 He won the Heart of Journey Award at our first annual celebration, 12:02 um, 12:03 and we just have this team that has bought into that local community. 12:07 And once you prove it to the market. 12:10 You, 12:11 you can then go to the REI or other capital investors and others and say, 12:14 look, 12:14 this is what we did in this first building. 12:17 Are there other opportunities that are out there 12:19 once you prove it? 12:20 Absolutely. 12:21 And so what was your next acquisition of building? 12:24 So our next acquisition was 11, 12:27 um, 12:27 through one REIT partnership. 12:29 Um, 12:29 they were, 12:30 they had a portfolio that was struggling with some regulatory results, 12:33 especially in a market 12:35 in Kentucky that I had, 12:36 um, 12:37 operated prior. 12:38 And so. 12:40 The REI reached out 12:41 and through conversations, 12:43 and then another REIT had reached out that was looking to exit a portfolio, 12:47 maybe come in under a lease to purchase option. 12:50 And so both of these 12:52 conversations are happening. 12:53 And then at one point, 12:54 you think both of these deals are off the table. 12:57 And then, 12:57 of course, 12:58 you know, 12:59 over a course of 6 weeks, 13:00 you signed up for both of them, 13:01 right? 13:02 They both came on, 13:03 um, 13:03 and that, 13:04 that totaled, 13:05 you know, 13:06 19 more buildings for us and then we had, 13:09 you know, 13:09 another deal that, 13:10 that came up at the end of that year, 13:12 but 13:12 we were, 13:13 We'll bring on 11 facilities staggered over a three month, 13:16 um, 13:17 at 13:17 the end of summer of 24, 13:19 and then in the fall, 13:21 um, 13:21 we brought on 9 more facilities in, 13:23 in a new state for us. 13:25 What are some of the key metrics that you 13:27 care about the most and how have you done on those metrics in, 13:30 in all of your portfolio? 13:32 Yeah, 13:32 I think 13:33 for us right away our strategy is we have to start by looking at staffing. 13:38 And 13:39 agency usage is a killer not only to quality and the culture of a facility, 13:45 but it's extremely costly 13:47 and so we look to eliminate agency right away. 13:50 A lot of the facilities and the deals that we see are one star facilities, 13:54 so they're 13:56 regulatory turnarounds, 13:57 and that takes a minute, 13:58 right? 13:59 The 5 star, 14:00 getting the next annual survey, 14:02 2 quarters delayed in quality measures. 14:06 Basically, 14:06 when you take over, 14:07 trying to get the PBJ identifiers to line up in the 6. 14:12 Six full quarter 14:13 discourse, 14:14 you know, 14:15 sometimes on the turnover and, 14:17 and some of those points, 14:18 it takes time. 14:19 So we focus a lot on occupancy. 14:21 A lot of facilities 14:23 we see and um deals that we've looked at, 14:26 they're 60, 14:27 70% occupied, 14:28 they're 10, 14:29 15% below the state average. 14:31 So we come in right away with a strategy and a plan to eliminate agency. 14:36 And how can we help the facility become a better resource to their community 14:40 and help improve occupancy? 14:42 I believe occupancy 14:43 is a direct reflection of how well you're doing. 14:47 With care, 14:48 investing in 14:49 your facility, 14:50 taking care of staff, 14:51 the reputation, 14:52 working with the local hospital systems, 14:55 it's not just, 14:56 hey, 14:56 I've got a great marketer, 14:57 it's a total 14:59 holistic approach to how the operations are going. 15:02 And as I'm around your leadership team more 15:04 so than any organization I've ever been around, 15:06 there's this culture of full occupancy. 15:09 I mean, 15:09 it, 15:10 it's almost discussed as. 15:12 It, 15:12 it's not acceptable to not 15:15 be above 90% or to have full occupancy. 15:17 Is that an intentional strategy or is that just organically developed, 15:20 or what's? 15:21 Everything we do, 15:22 I think, 15:22 is intentional. 15:24 It's grown organically, 15:25 but it's very intentional. 15:26 My first meeting 15:28 in the dining rooms with teams, 15:29 I'll let everyone know. 15:31 I do not apologize for asking for census. 15:33 Occupancy 15:35 helps us achieve our mission and vision, 15:37 and 15:38 We, 15:39 we never will apologize for trying to come up with 15:43 strategies in which we can help our facilities achieve 15:47 maximum occupancy and be a resource to their community, 15:50 to their healthcare community. 15:52 Our chief operating officer, 15:53 Matt Trammel, 15:54 known for 20 years, 15:56 he believes in. 15:56 Our chief nursing officer, 15:58 what clinical programs. 15:59 Do we need to put in? 16:01 What training do we need to do, 16:02 tools, 16:03 resources we have to put in 16:05 to be able to meet the needs of the, 16:06 of the local hospitals and those healthcare systems. 16:09 So 16:09 it's, 16:10 it's at every level of our organization. 16:13 And in your mature buildings you're over 90% occupied. 16:15 Absolutely. 16:16 The state of Georgia, 16:18 we just expanded greatly to begin this year. 16:21 Um, 16:21 we were 95% occupied in Georgia in 9 facilities, 16:26 so 16:27 we're just 16:28 really excited. 16:28 Our 1st 45 days with 15 new buildings, 16:32 we, 16:32 we'd already grown 7% occupancy in the 1st 45 days. 16:36 People are excited for that. 16:38 And again, 16:39 when you come into buildings, 16:40 you don't cut costs, 16:41 you actually increase spending. 16:42 We do. 16:43 We focus on the employee benefits, 16:46 our care team member, 16:47 what we call the journey advantage. 16:50 Uh, 16:50 whether it's incentives, 16:52 quarterly raises, 16:53 increasing those, 16:55 um, 16:56 employee benefits, 16:57 healthcare, 16:58 supplemental insurance, 17:00 whatever it is, 17:01 we, 17:01 we wanna make sure that we're competitive in wages, 17:04 but we also wanna make sure that we have 17:07 a full toolbox for our facility leadership to be able to go out and recruit, 17:12 whether it's free telehealth, 17:14 free life insurance. 17:15 Maybe it's quarterly raises, 17:17 maybe it's our incentive plan for direct care staff, 17:20 whatever it may be, 17:21 we want to arm. 17:23 Our leaders to go out and be able to not 17:26 only recruit the best staff but retain the good staff 17:29 and stop that turnover. 17:30 You've obviously spent a lot of money on your frontline staff, 17:34 a lot more than other providers, 17:36 with the philosophy of this will save us money because 17:38 we won't have overtime and we won't have agency. 17:41 One of the things that you do is a perfect attendance bonus. 17:44 Can you tell us a little bit about that? 17:45 Yeah, 17:45 I think aligning that behavior, 17:48 I, 17:48 you know, 17:49 long term care, 17:50 staffing's always been brutal. 17:52 Coming out of COVID, 17:54 staffing 17:55 was just crucial. 17:57 I think we put together our schedule like a quilt, 18:00 going into every weekend, 18:01 right? 18:01 We'll patch it together. 18:03 Sally will pick up 4 hours here. 18:05 This unit manager is gonna pick up Sunday, 18:07 and we're gonna do this and we're gonna do that, 18:09 right? 18:09 And then you have a call-in, 18:11 and it just destroys that quilt. 18:12 It has a big hole in the middle, 18:14 it's ineffective. 18:15 Someone has to pick up that shift or, 18:18 you know, 18:19 hopefully, 18:19 no one goes without that staff member 18:22 in the facility. 18:23 So we really wanted to tour call-ins. 18:26 We want to make sure that good staff feel supported by working around 18:30 other good staff who want to show up for the shifts in which 18:34 they're here, 18:34 so we align 18:36 a 18:36 significant. 18:38 Commitment, 18:38 it's about 30% of their base wage 18:41 they can make back in a perfect attendance bonus just for showing up 18:46 this week 18:47 for every shift in which you go. 18:49 We do weekly pay, 18:50 which is a big hit in our markets, 18:52 and then 18:53 you can have that perfect attendance. 18:55 I mean, 18:55 that's a remarkable benefit if a CNA shows up every shift. 18:59 Doesn't miss any shift. 19:00 It's on time. 19:01 They're there for the full 37.5 or 40 hours, 19:03 whatever it is. 19:04 They get like a 30% bonus. 19:06 Absolutely. 19:07 And it part-time and full-time, 19:08 and 19:09 that's a big deal, 19:10 but it's a, 19:11 it's a lot less than the cost of agency. 19:13 It's a lot less, 19:14 and they're our staff. 19:15 We know that they're trained in our programs. 19:18 We know that we have the skills validations on them, 19:21 right? 19:21 They, 19:21 they understand 19:23 the standards. 19:25 That's it's brilliant, 19:26 and we hope that it also drives down overtime 19:29 because the overtime is really driven by call-ins, 19:31 picking up extra shifts, 19:33 holes in that schedule. 19:35 We're naturally gonna have some holes in schedule. 19:37 We're naturally gonna have time off, 19:38 things like that. 19:39 Life happens, 19:41 but we want to limit those call-ins. 19:43 Tell us about what happens with the quality 19:45 measures in these buildings you've taken over. 19:47 Well, 19:47 our, 19:47 our chief nursing officer Jody O'Mara, 19:50 she comes in and she, 19:51 day one, 19:52 if not day two, 19:53 whenever the internet's turned back on, 19:56 we start going over the nine clinical 19:58 systems that she implements throughout the organization, 20:01 and we start with risk mitigation and reportables and, 20:05 and survey management. 20:07 Different items like that, 20:08 we, 20:09 we focus on that, 20:10 but from a quality measure, 20:12 we put in performance improvement plans, 20:14 we look at their QMs, 20:16 we use some software that helps us really look at those QMs. 20:20 And we anticipate, 20:22 where are the opportunities? 20:24 Is there low hanging fruit QMs? 20:26 Are you this, 20:26 are you 5 points away from the next measure 20:29 and put in clinical 20:31 performance improvement plans. 20:33 We also invest a lot in clinical consultants. 20:37 And and that support to the DONs 20:40 to work those performance improvement plans 20:43 and you've seen your QM scores go up almost a single a whole full point, 20:47 a full star for the QM star for any building that we had owned for 12 months, 20:52 which is. 20:53 Pretty remarkable. 20:54 Um, 20:55 some of these facilities were, 20:57 uh, 20:57 we, 20:57 we had a lot of work to do with some tough survey histories, 21:01 um, 21:02 so it takes time and the states are behind 21:05 and now there's a change to health inspection score. 21:07 We really focus on our quality measures. 21:09 That's awesome. 21:10 OK, 21:10 so what, 21:11 what incentives do your, 21:13 uh, 21:14 leaders in your buildings have, 21:15 your DONs and your administrators? 21:17 Do you, 21:17 do they have bonuses that are tied to metrics or absolutely, 21:20 um. 21:21 You know, 21:22 we try and tie our incentives to every layer of the organization. 21:26 Our regionals would not bonus if their administrators don't bonus. 21:29 Our nurse consultants aren't gonna bonus 21:31 if our DONs aren't bonusing, 21:33 right? 21:34 But what are those? 21:35 What are the things that are important to us? 21:37 What 21:37 intentionally we build our 21:39 incentive plan, 21:40 and it's significant. 21:41 You can bonus 40, 21:42 50% of your salary. 21:44 Yeah, 21:44 incredible. 21:45 Right? 21:46 If you can focus on improvement in the five-star, 21:48 are you gonna have a good survey? 21:50 Our first big portfolio really struggled with closing timelines. 21:55 Passing the first revisit. 21:57 So we put in 21:58 first revisit bonuses. 22:00 That's important to us. 22:01 Make sure that we, 22:02 if we are taking tags, 22:03 that we're closing out those timelines, 22:05 avoiding denial of payment, 22:07 not messing with the certification, 22:09 right? 22:09 So that's really important. 22:11 Agency elimination, 22:14 improvement in your 5-star, 22:15 real-time, 22:16 you know, 22:17 perfect, 22:18 uh, 22:18 perfect survey bonus of significant value. 22:21 We handed out 2 of those in our first year. 22:23 Um, 22:24 super excited for that. 22:25 And then there's occupancy metrics on a monthly basis, 22:28 quarterly quality metrics, 22:31 annual survey, 22:32 and some financial performance metrics for, 22:34 for our leaders. 22:35 Yeah, 22:36 so 22:37 when you and your partner sat down and 22:39 talked about forming journey, 22:40 what was your vision? 22:41 What, 22:42 what did you all want to accomplish and 22:43 what was your actual vision for the organization? 22:46 We've been very intentional in everything that we've done, 22:49 and we came up with a big bold vision to change the world one heart at a time. 22:54 We truly believe that's what we do. 22:57 When we take care of someone's mother or father, 22:59 or brother or sister, 23:00 when we, 23:01 when we have that great responsibility to be the employer, 23:04 we are changing someone's world. 23:06 So we came up even with our 23:08 logo 23:10 to tell a story. 23:11 It's 23:12 a two-tone logo with a heart at the center, 23:14 that heart. 23:15 And that light blue represent the residents that we're honored to take care of 23:20 and that circle 23:22 is open ended because life's a journey, 23:24 not a destination 23:25 and wherever you're at on the care needs, 23:27 whether it's short term rehab home 23:29 or end of life care and someone to hold your hand and become that extended family, 23:33 we wanna rise up and meet the care needs of our community 23:36 and then the neighbor. 23:37 Blue symbolizes our care team. 23:39 Wherever you're at on your career, 23:41 we want to be the employer of choice. 23:43 Whether you're a brand new dishwasher 23:45 or, 23:46 uh, 23:46 you know, 23:47 2-year CNA or you've been a nurse for 44 years. 23:51 We want to have a place for you 23:52 on your career journey. 23:55 And we wanna be able to help you grow that journey 23:57 as well as I've had those opportunities with so many mentors, 24:00 we wanted to replicate that and so we were very intentional on how we designed 24:04 our logo 24:06 to match 24:07 the change the world one heart at a time and focus on that resident care 24:11 and become their extended family as a resident encircling 24:14 the heart of the residents we take care of. 24:16 So. 24:18 I'm gonna tell a quick story that just 24:19 illustrates that when you talk about wanting it 24:20 to be a great place and when you talk about having a passion for your CNAs, 24:24 it's not BS, 24:25 it's a real thing. 24:26 You asked me to come down to Atlanta and I got to judge a skills competition where 24:30 you had a certified nurse aide from every single one of your buildings that came in. 24:34 They showed different skills and you had a panel of judges, 24:37 including very unqualified one like me. 24:39 That was, 24:40 was ranking these people and at the end of the day, 24:42 first of all, 24:42 it was fun for them to come to Atlanta. 24:44 A lot of them hadn't flown before 24:46 and they, 24:46 it was fun for them to be wined and dined for that. 24:49 And at the end of the competition, 24:51 the top 3 or so received an award, 24:53 but I remember at the end you said, 24:55 OK, 24:55 I want all the CNAs to come up to the front 24:58 because we have one other announcement. 25:00 And your announcement was, 25:01 we don't want any of you to leave here with nothing. 25:04 And so we are awarding every single one of you a full 25:07 nursing scholarship to any nursing school that you want to go to. 25:10 And I gotta tell you, 25:11 it was one of the most 25:13 impactful moments I've ever been in. 25:14 The the CNAs were jumping around. 25:16 They were calling their family. 25:18 They were crying. 25:18 Hell, 25:18 I was crying, 25:20 uh, 25:20 because of what an incredible thing you've done for those CNAs. 25:23 So just why did you do that? 25:24 And, 25:25 and 25:25 I, 25:26 I guess, 25:26 but maybe a better question is 25:28 how was your time as a. 25:29 DNA impacted you and then and talk a little bit about that program. 25:32 Yeah, 25:33 those were the two best days we had a nurse summit and a CNA summit, 25:38 two best days in almost 25:39 30 years in long-term care. 25:41 Um, 25:42 being a CNA has impacted every step of my career. 25:46 It impacts me every day as CEO of Journey, 25:50 focusing on what hard work that is. 25:53 The stories, 25:54 the lives I was able to impact standing at the bedside. 25:57 I remember the first resident 25:59 who I lost, 26:02 right? 26:02 I remember that really tough six month rehab and 26:05 finally got to go back home with his wife, 26:08 um, 26:08 when I was a CNA and actually became a nurse 26:11 during the time I was taking care of that resident. 26:14 You know, 26:14 you remember those stories and the people, 26:17 and it reminds you why we do long term care. 26:20 You know, 26:21 what gets in our blood is taking care of people. 26:23 So when we had the opportunity as ownership at journey, 26:27 we said, 26:28 how are we gonna be different? 26:30 How do we live out our vision statement? 26:32 How do we really say, 26:33 OK, 26:34 it's not just talk, 26:35 but the CNA summit, 26:37 and when you take over these buildings with all this agency, 26:40 you get 26:41 skills validations and 26:44 paper manila folders and and HR office at the. 26:47 Facility 26:48 and now you've hired on a bunch of staff and you've 26:50 got to make sure all our staff have the same skills. 26:53 So 26:53 we electronically put those 26:55 into our e-learning system, 26:58 make sure that we can validate that each building selected a nurse and CNA winner, 27:03 and then we said, 27:03 OK, 27:04 how do we do that? 27:05 Skills fair in the dining room. 27:07 Upgraded. 27:09 Vendor sponsors were outstanding. 27:11 We had 27:12 full electronic high low beds, 27:14 mannequins with wounds and IV access, 27:18 real med carts and vital sign machines for our staff to use. 27:22 And then we said, 27:23 all right, 27:24 now how do we get America's Got Talent? 27:26 We got to have Mark Parkinson as our Simon Cowell and, 27:29 um, 27:30 paired you each with a nurse consultant so you 27:32 could know the actual steps of the skills validation, 27:35 and we made it a lot of fun. 27:36 They got prizes coming in. 27:38 I don't think any CNA from West Virginia had ever been on a plane, 27:42 and there they all three were on the same plane and 27:44 our staff were greeting them at the 27:46 door, 27:47 helping them navigate the Atlanta airport and getting them over to the hotel and 27:52 set up for the skills, 27:54 and 27:54 it was just an incredible ending to be able to say, 27:57 hey, 27:58 Here's 22 people, 27:59 and 28:00 if you'd like the opportunity to change your life, 28:03 we're, 28:04 we're gonna be able to provide that for you, 28:06 and we think in return we're changing the 28:08 profession by creating more nurses and people who have 28:11 long-term care in their blood. 28:12 Remarkable. 28:13 So what's the future of Journey and how do 28:15 you see the future of the long-term care space? 28:18 Uh, 28:18 the future of Journey is some more growth. 28:20 We have some expansion. 28:21 We've 28:22 really been impressed with the state of Georgia, 28:24 and we have a lot of growth there, 28:26 um. 28:27 Over this first half of the year, 28:29 and then stabilizing that growth. 28:31 We'll look at key strategic growth in the Midwest and Southeast, 28:36 um, 28:36 where the journey advantage and our culture is really 28:39 taking roots and we have some good relationships. 28:42 Um, 28:43 and focus on 28:45 actually now making all these performers come to life, 28:48 right, 28:48 and looking at the different ownership strategies, 28:51 whether exercising purchase options or, 28:54 you know, 28:54 taking some facilities over into HHUD financing, 28:57 you know, 28:57 we have different, 28:59 um, 29:00 strategies from an ownership that help us secure the future of journey, 29:04 right? 29:05 But owning that real estate or 29:07 taking things over to HHUUD and under a 29:09 forty-year term. 29:11 It allows the safety and security that we know journey is gonna be around 29:15 and we're gonna be able to provide great care so we're excited about that, 29:19 um, 29:21 this 29:22 profession, 29:22 one thing I've learned is it never stays the same, 29:25 right? 29:26 It's, 29:26 it's gonna constantly change for us and 29:30 we wanna stay ahead of it. 29:31 We're, 29:31 we're looking at different ways in which we can embrace technology. 29:35 AI is the buzzword of everyone's buzzword right now, 29:39 and every vendor has an AI solution for us. 29:42 We wanna figure out from an organization, 29:44 the bandwidth that we have to be able to bring these in and be efficient. 29:49 You know, 29:49 maximize the technology investment, 29:52 help our staff 29:53 meet the growing needs of, 29:55 of the generations that we're gonna take care of, 29:58 you know, 29:58 we'll continue to focus on occupancy. 30:01 Right now, 30:01 the next 12 to 18 months, 30:03 a lot of focus on construction, 30:05 a lot of focus on investment of capital expenditures in our existing portfolio, 30:10 um, 30:10 and bringing these facilities 30:12 up to standard. 30:14 You know, 30:15 big remodels, 30:16 putting in generators, 30:18 and then getting, 30:19 giving back to the community. 30:20 So we're, 30:21 we're super excited about where we are today. 30:23 We're excited about where long-term care can go. 30:26 We're hopeful for some regulatory common sense 30:30 to come 30:31 over the next few years. 30:33 I'm know, 30:33 I'm personally really passionate about some self-reportable survey. 30:39 Change on how we can handle that process so that we can have transparent operators 30:44 who wanna work collaboratively and report clearly 30:48 but also not make it so punitive, 30:50 um, 30:51 on the operators who do report. 30:53 Right. 30:53 Well, 30:53 Bernie, 30:54 thanks so much for being with us today. 30:56 Fantastic story, 30:57 very inspirational and really glad that again that you 30:59 came in studio to tell us the story. 31:01 Yeah, 31:01 absolutely, 31:02 really enjoyed it. 31:03 Thank you for having me, 31:03 Mark. 31:04 And thanks to all of you for your support of Park Place. 31:06 I think when you, 31:07 when you think about journey, 31:08 a lot of people would say, 31:09 hey, 31:09 this is a, 31:10 uh, 31:11 a very quick thing that happened in 2 years. 31:12 This did not happen in 2 years. 31:14 This happened in almost 30 years when uh Bernie spent his first summer as a CNA. 31:19 It hasn't been an overnight hit. 31:20 It's, 31:21 it's happened for a long time, 31:22 and I predict 31:23 they'll be a force to, 31:24 to deal with for many years in the future. 31:27 Thanks to Prevail at First Quality for sponsoring this Let's Talk 31:30 segment and thank you for your continued support of Park Place. 31:34 Oh my God, 31:35 if you're still watching this, 31:36 this means that you watched the end of a very long video on Park Place. 31:41 I'm not sure what that means. 31:42 It says something 31:43 about you, 31:44 or maybe there was just nothing else to watch today, 31:46 or 31:47 maybe your priorities are a little bit off, 31:49 but whatever it is, 31:50 we really appreciate your support and 31:53 if you wanna continue to follow us, 31:54 follow us on LinkedIn and our various social media sites. 31:58 And, 31:58 you know, 31:59 try to find something else to do.
