It is said that "a picture paints a thousand words" and the picture below is a great one. The story it tells for home care is profound (but I'll keep this to a couple hundred words).
Let's start with the story that this tells in general:
- 5% of the population accounts for half of health care spending
- If you add the next 5% you're at 75%
- When you add the next 40% (those with chronic illnesses who are not it the top 10%, you're up to 97%
- The health half of the population (the healthy people) spend very little
What Does This Mean for Home Care?
Let's face it, home care is not the first thing that people think of when they think about the health care system, but I think that's good news because there's lots of potential for home care to go beyond ongoing personal care and 60-day episodes of home health. Home care can play a bigger role in two key ways, as follows:
- Chronic Care Management Services: Here's the deal... Physicians are starting to be incentivized (and penalized) for their performance with respect to their chronic patients, but there's a reimbursement associated with it. The reimbursement is for patients with two or more chronic conditions in a practice with a certified EMR (Electronic Medical Record) system. The reimbursement has two levels. The first level, reimbursed at $42/month, requires a 20 minute check-in (e.g., on the phone) with the patient. The second, reimbursed at almost $100, requires telehealth. Home care agencies can put a program in place where your best aides are paid $10 for a 20 minute check-in call. If you charge $32 for this service (leaving a $10 margin for the referring practice) and allocate some of the revenue to your staff nurses and for software, you can provide a great service and make a reasonable margin.
- Care Transitions Services: You can provide services to help transition patients from hospital to home. Most hospitals are now being penalized for excessive readmissions (see our recent article Kaiser Shares That 2,610 Hospitals will be FIned $428MM for Readmissions). These hospitals can use your help and there are many benefits to your agency. We have a new white paper (click below) to teach you about the numerous benefits that your home care agency can achieve.
At Ankota, we love providing home care software, telephony, care plans, scheduling, billing, payroll and all the other basics, but we really love that we can enable your agency to play a broader role in the future oh health care. We can make a difference together. Please download our newest free white paper "Why Care Transitions is the Next Big Thing for the Home Care Industry."
Ankota provides software to improve the delivery of care outside the hospital, focusing on efficiency and care coordination. Ankota's primary focus is on Care Transitions for Readmission avoidance and on management of Private Duty non-medical home care. To learn more, please visit www.ankota.com or contact Ankota.