Information on the financial operations of a facility can provide
useful information when evaluating a facility. The net income
or loss, for example, can indicate whether the facility is financially
stable or whether it is in financial trouble. In addition, while
the majority of revenue for nursing home care is provided by state
and federal funding, facilities are not required to spend these
funds in any set proportion for particular services or cost centers.
Thus, a review of particular expenses in the individual cost centers,
compared with the statewide average, can indicate the financial
priorities in a facility.