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5 Ways for your Home Care Agency to Deal with Margin Squeeze


Total spending on home care services continues to rise unabated as the grey tsunami hits healthcare systems across the Western world.

This is good news for your home care agency, but then why are HHAs all feeling the squeeze? With downwards pressure on re-imbursements and upwards pressure on wages it’s no wonder agencies are feeling the margin squeeze.

Here are 5 things you can do create a little breathing room for yourself:

  1. Be more accommodating of your employee’s schedule preferences

It sounds counter-intuitive, but PSWs rank schedule accommodation as the number 1 reason for choosing to work for one agency vs another. The more you can retain your staff and attract great care givers, the less cost you’ll incur recruiting and training new staff members.

  1. Don’t be denied!

In today’s reality, payers often appear to be looking for reasons not to pay their bills. The best way to protect against this is with digital records of patient visits and services delivered. Put a smartphone in your care givers’ hands and put the AlayaCare app on that smartphone. Then you’ll have GPS-tagged punch data and reporting proving you delivered the promised services.

  1. Reduce the overhead of dealing with manual and/or unintegrated systems

Do your care coordinators spend time entering the same information in multiple systems? Do they work with two browser windows open and a stack of paper beside them? If you answered yes to any of these questions, you might be a red wreck. Red on the bottom line that is. Make sure your IT systems are working for you and not the other way around.

  1. Smarter routes & schedules = reduced travel-time

Continuity of care is more than important, it’s an essential part of delivering great care. That being said, having your car workers crisscross the city day after day does not need to be the trade-off. Have your care coordinators take a step back every week and see if there are a few tweaks to visit times of care assignments that could make everyone’s schedules much more efficient.

  1. Where possible, move to a subscription payment model and leverage technology to deliver better care for lower cost

This may initially only be an option for your private pay business, but we can see the writing on the wall. Public payers and insurance providers will be moving in this direction. Leverage remote patient monitoring (RPM) and TeleHealth tools to keep on top of your patients’ health between visits.

Ultimately you’ll be able to reduce the number of visits while increasing the outcomes for the patient: the classic win-win-win.