A lower cost per visit can look like evidence of greater efficiency. But what does that visit accomplish—and how many visits are needed to achieve the desired result? In my recent article, “Do You Know What It Costs Your Agency to Make a Visit—Today?”, I emphasized...
For too long too many HHAs have relied on their MCR to identify the costs per visit (CPVs) throughout the year. This is not a sound business practice as all HHAs should be calculating their CPVs shortly after they close their books each month.
Innovative Financial Solutions for Home Health is pleased to announce the release of the newly revised and expanded Case-Mix Planner™ (CMP)—formerly known as the Resource Planner. The CMP was originally designed—and has continued to evolve—to help home health agencies...
Why Organizations Often Wait Too Long to Seek an Outside Perspective Most organizations experiencing a persistent financial or operational problem are not doing nothing. Ownership and management may have spent months changing processes, adjusting staffing, reviewing...
Most home health agencies know their revenue each month. They know their expenses. And they know the resulting net income or loss. In other words, they see the top line, and they see the bottom line. But how well do they understand everything that happened between...
Will you prepare a budget to better manage the upcoming year—or miss the opportunity and later wonder why your agency underperformed? For most calendar-year home health agencies, serious budgeting for the upcoming year should begin around October 1. But if your agency...
How multiple, unrelated problems can hide behind rising revenue and aggregate profit The financial figures in this article are approximate, and certain details have been generalized to protect client confidentiality. Several years ago, the owners of a relatively new...
Why revenue and bottom-line profit are not enough to manage a home health agency The financial figures in this article are approximate, and certain details have been generalized to protect client confidentiality. Several years ago, the owner of a Medicare-certified...
The Profitability Threat Most Home Health Agencies Never See When home health agencies experience declining margins or disappointing financial performance, the first explanation is often reimbursement. It's an understandable reaction. CMS changes payment rates. Labor...
The PEPPER report cover page The free PEPPER (Program for Evaluating Payment Patterns Electronic Report) is returning. CMS will soon relaunch the Program for Evaluating Payment Patterns Electronic Report (PEPPER) for all provider types over the next few months....