In the past, home care agencies have in part realized higher profit margins compared to other healthcare providers. Fast forward to today, those margins may be shrinking. In today’s reimbursement environment where profit margins may be smaller with the Medicare base rate, the way out is not only to maximize revenue and cut costs; the plan needs to include how to gain efficiencies in performing your everyday tasks.
Homecare and hospice providers already know to gain immediate efficiencies is to automate with homecare or hospice software for scheduling personnel and patients; billing, financial management and clinical point of care. Leveraging technology is the first step to become more efficient at delivering care. The second step is to evaluate your business performance from an analytical approach. Homecare software combined with financial analytics of costs and actual revenues help you evaluate your business performance.
To evaluate your business performance, try these suggestions:
- Use technology to help – generate financial reports from your software
- Benchmark against other providers in your community in areas of costs, payer mix, outcomes and service utilization
- Review your process measures
- Identify where your performance differs from the other providers
- Enumerate all the possibilities
A homecare or hospice business should determine its profitability from all payers and programs, then drill down into each program. Medicare is probably your leading payer, but as CMS cuts rates, you need to develop your non-Medicare revenue and other revenue streams. As you expand your non-Medicare payer mix, other payers will want to see clinical outcomes results that reflect that you deliver extraordinary care, so you must have a manner in which you can reveal your outcomes. Benchmark tools coupled with your clinical and billing software can automate this essential task for you.
Successful and profitable homecare or hospice providers work in tandem with other healthcare providers to meet patient care goals. The higher the case-mix weights and OASIS scores, can be directly related to achieving more profitability. Support your efforts by sharing actionable data and collaboration among clinicians and therapists to discuss directly the condition and goals of each patient.
Working with technology, personnel and costs to deliver good patient outcomes is a delicate balance. Combine OASIS, billing, visit, and staff activity data for insight to where the gaps are in your processes to remedy them quickly for efficiency gains. When these workflow processes are not wasteful, only then can your business realize true financial improvements.
Dare to be different – and achieve the financial results you desire to ensure profitability success.