The Hidden Cost of Unaligned Funding and Workforce Planning

Hitting Your Care Target Isn’t Enough. You Could Still Be Losing Money

You can deliver 100% of your care minutes and still operate at a financial loss.

Why? Because the funding you receive must outweigh the cost of delivering it. If your labour cost per minute exceeds your funding revenue, you’re technically fulfilling requirements — but losing money.

This is especially true when:

• Roster costs are rising faster than funding adjustments, especially with high agency usage

• You’re overdelivering care minutes without strategic alignment to funding

• Your team isn’t reviewing funding vs. workforce cost in real time

The Problem

Most providers don’t track this balance live. Financial reviews are delayed or disconnected from care minute performance — and the losses go unnoticed until it’s too late.

The Solution

Track your Funding–Resource Efficiency (FRE) throughout the quarter. FRE is a metric that shows whether your total funding (including Variable Funding, Fixed Funding, Care Minute Supplement (CMS), and New Entrant Funding) covers your actual workforce cost.