Skip to content Accessibility tools

Discovering What the ADS Financial Indicator Results Can Reveal About our Field

Survey Deadline Extended to July 31, 2015

NADSA, CARF International, and Reinsel Kuntz Lesher LLP are conducting the 2015 ADS financial indicators study in fulfillment of the goal to develop financial benchmarks for the Adult Day Services field. This is the sixth year of this study and NADSA offers an Annual Meeting presentation to reveal the study findings as well as a webinar for members. ADS centers that participated in the study also receive complimentary individualized reports with their benchmarking data. If your organization is an Adult Day Services provider, you are invited to participate in this complimentary study. Instructions for participation are included in this article along with why this is valuable for your organization, and highlights from last year’s study.


“The financial indicators data has been extremely helpful to After Gateway,” observed Scott Logan, Program Director of After Gateway, a NADSA member located in Greensboro, NC. “The data in the report helps to confirm that we compare positively with our peers. Our leadership and our donors also value this financial information to confirm that we are effectively managing financial resources. Participation in this study is simple and it costs us nothing, but we get very helpful information that helps us to manage our program today and also plan for the future.

The ADS Financial Indicators Study includes ratios for all participants and it allows for comparison of the same participants’ financial results year over year. The types of ratios presented in the study include the following margin (profitability) ratios:

  • Net Operating Margin (NOM) Ratio—The Net Operating Margin (NOM) ratio looks at the core, sustainable business of an ADS provider; that is, the revenues and expenses realized solely in the delivery of services to clients. The purpose of this ratio is to provide a benchmark from which providers can determine the margin generated by cash operating revenues after payment of operating expenses.
  • Operating Ratio (OR)—The Operating Ratio (OR) measures whether current year cash operating revenues are sufficient to cover current year cash operating expenses.
  • Operating Margin (OM) Ratio—The Operating Margin (OM) ratio measures the portion of total operating revenues remaining after operating expenses are met.
  • Total Excess Margin (TEM) Ratio—The Total Excess Margin (TEM) ratio includes both operating and non-operating sources of revenue and gains.

Key observations from the 2014 study include:

  • With regard to the Net Operation Margin (NOM) ratio, the study revealed somewhat weak operating performance, but better results from prior year; however, only 36% of participating ADS centers have a positive NOM.
  • The operating ratio (OR) results show somewhat weak operating performance, but better results from prior year and only 37% of participating ADS centers have an OR below 100% (break even).
  • Only 33% of participating ADS Centers have a positive operating margin (OM) ratio.
  • The best results of all margin ratios were seen in the total excess margin (TEM) ratio. While operating performance was weak, results were better than the prior year. Only 44% of participating ADS Centers have positive TEM.

The value of financial benchmarking information offers measurability of several key business areas for ADS organizations. This measurability, if used proactively by organization leaders, can lead to an increase in funding from grants, contributions, and possibly even higher reimbursement rates resulting from effective legislative advocacy. In today’s environment, “telling your story” has little meaning unless you include data to support the value and the needs of the sector. Ratios can also reveal trends that can be tracked from year to year—underscoring the fact that, despite effective management with very limited resources, there is a revenue problem for many providers. Finally, benchmarking promotes collaboration among field leaders to develop educational approaches and resources to address identified needs in the sector.

CARF International is now conducting the 2015 ADS Financial Indicators study. If your organization is an Adult Day Services provider, you are invited to participate in this complimentary study. To participate, please send the following information by email to or fax to 1-202-587-5009 by Friday, July 31, 2015:

For your adult day service program’s fiscal year ending in 2014:

  • 2015 ADS Indicators Supplemental Information
  • Internal unaudited 2014 fiscal year Financial Statements including Revenue and Expense, Balance Sheet, and Cash Flows, or;
  • Corporate audit Financial Statements for 2014 fiscal year (if available).

Note: If your financial information is consolidated for a larger organization, please clearly identify the adult day services financials or send a separate report with only the adult day services financial information.

Mr. Jeff Boland, Partner, Reinsel Kuntz Lesher LLP will be analyzing the financial data submitted. Mr. Boland is a representative from CARF’s Financial Advisory Panel (FAP). He has presented the results of the last five studies at the NADSA Annual Conferences in 2010–2014. For more information on the FAP, see and type “FAP” in the search field.

CARF, NADSA and RKL view this initiative as a way to add significant value to the ADS field. For additional information, please contact or toll-free 866-888-1122, ext. 5006.

LogoAfter Gateway Inc.
501 South Mendenhall Street
Greensboro, NC 27403

LogoSusanne Matthiesen, MBA
Managing Director, Aging Services
CARF International
1730 Rhode Island Ave., NW, Suite 410
Washington, D.C. 20036
Telephone:  (888) 281- 6531 ext. 5006

LogoJeffrey E. Boland, CPA
Partner, Senior Living Services Consulting
Reinsel Kuntz Lesher LLP
320 Market Street, Suite 373 East
Harrisburg, PA 17108
Telephone:  (717) 409-8844

—By Susanne Matthiesen, MBA, Managing Director, Aging Services, CARF International, Washington, DC

Translate »