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Introducing the Funding-Resource Efficiency (FRE) Model

  • Writer: Health Generation
    Health Generation
  • 12 hours ago
  • 1 min read
A worried woman sitting in front of a computer surrounded by paperwork. Text overlay reads: "The Supplement Isn't Additional Funding, It's a Penalty Waiting to Happen." Includes a call to action: "Contact us for a Free Care Minute Audit and CMS readiness check," and the Health Generation logo.

You don’t need more dashboards. You need one number: FRE.


Funding–Resource Efficiency (FRE) is the most practical metric for aged care financial health. It tells you if you’re financially ahead or behind — after accounting for all your funding (Variable Funding, Fixed Funding, Care Minute Supplement (CMS), and New Entrant Funding) and your direct workforce cost.

Most providers track funding, care minutes, and costs in separate systems. FRE brings them together into a single, actionable metric.


With FRE, you can:


  • Set a realistic financial goal that matches your care delivery and staffing capacity

  • Monitor your net position throughout the quarter

  • Take early corrective action before you fall short


If your FRE is negative, we help you fix it. That could mean:


  • Reclassifying residents to better reflect actual care needs

  • Planning targeted admissions to unlock New Entrant Funding and boost overall funding

  • Adjusting rosters to stay compliant without overspending


Ready to make your funding strategy predictable?

Book a walkthrough of our FRE-driven service and receive a Free Care Minute Audit.


 
 
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