Huis de Kuilen faced serious cash flow challenges that depleted all cash and investment reserves. Operational losses were recorded over three consecutive financial years, prompting urgent reflection on how to reduce losses and restore financial stability.
A review identified several contributors to the financial strain: onboarding new residents at reduced rates below unit cost, outsourcing maintenance work that could be done internally, failure to review monthly recurring contracts, allowing resident cash withdrawals, unmanaged water and electricity costs, and ineffective debtor management.
In response, a turnaround strategy was developed in consultation with the Governing Board. Measures included a new pricing structure for all new applicants and contacting families of residents receiving only SASSA grants to arrange co-payments. Monthly fundraising events were introduced, all contracts were renegotiated, and staff received training to improve productivity. Sick leave was managed more closely to reduce the need for substitute staff.
Solar panels were installed to reduce electricity costs, and the home began the process of replacing the old boiler system with heat pumps. The waiting list was actively managed to speed up new placements. Storage areas were converted into revenue-generating spaces, and single rooms were allocated for frail care to meet high demand and increase income.
Huis de Kuilen also invested in building strong relationships with the local community, charity organisations, businesses, churches, and other Badisa programmes. A customer satisfaction survey was conducted to better understand resident needs and improve service delivery.
Over 18 months, these changes were successfully implemented. By the end of the 2024/25 financial year, Huis de Kuilen had broken even and cleared all outstanding creditor balances. The improved cash flow marks a significant milestone in the home’s recovery.
Looking ahead, further projects are underway to maximise available resources and strengthen operational sustainability. Huis de Kuilen is now on a firmer path toward long-term financial health and remains committed to providing a secure, dignified environment for its residents and staff.
