If there’s anything certain in the home health and hospice market, it’s that NOTHING is certain in the home health and hospice market. It is ever-changing. And as an RCM company that seeks to provide the BEST analytics and service, we must be willing to change with it. We recently recorded a podcast that outlined the trends we are seeing as we head into 2022.
As I reflected on what I was seeing, I wrote a short email to my team and thought I would share it to give you some insight into what is happening internally at HealthRev.
Here is what the email said:
Dear HRP Team,
Agencies continue to battle the staffing shortage. This has caused a decline in admissions and data suggests that numbers are stabilizing below pre-pandemic levels. Larger agencies reported Q4 numbers and some have estimated losses up to 2500 admissions. Loss of admissions have a direct impact to agency revenue.
At this point, it is hard to say what the admission trend would be if providers were able to accept all referrals (if 100% staffed). Time will tell and we will continue to monitor the data. It’s important for us to monitor this data because as a partner with agencies, we must work together to identify solutions.
I must admit, I had never heard of, “aqui-hiring” prior to understanding new strategies being used by agencies in 2022. What does this mean? It means acquiring your competition for their talent, not to increase market share. So instead of recruiting, they are buying smaller agencies for their staff.
Good news for home health is that they are capturing a bigger piece of the post-acute pie. That’s awesome and proves once again, what they do, matters and changes lives.
So how will this likely affect RCM services?
Collections are critical.
Cash flow is going to be looked at and critiqued continuously. Now, more than ever, automation will be the driver that wins business and lowers the DSO.
Value vs Commodity buying decisions.
As a customer myself, results mean more to me than price, but price still matters, right? However, not all services are created equal. Talent is the differentiator. The company name may be the reason they called them, but it shouldn’t be the reason they do business with them. We know “you” (the people behind the service) are the “why”. We will continue to hire the best talent because it is our brand.
The majority of RCM companies are either owned by an equity firm or by an EHR company. Neither are bad, just different. We continue to thrive in the private sector because RCM is all that we do. This is our hedgehog. One-Hundred percent of our R&D go back into RCM. Our competitors continue lowering their prices to win business. We will stay committed to our core values. We win business through relationships, transparency, and results. The majority of our clients were already outsourcing when they came to us. This proves that price without value equals continued frustration and poor results.
One strike and you may be out.
Agencies need a RCM partner, not another vendor. Education along with service will assist agencies in their growth plans and eliminate false data and empty promises of those that compete in our space. RCM can not be a transactional business or agreement. The fundamental principles around these types of services must provide insight, education to drive action and real data so agencies can expand their market share within the community they serve.
No business can hit a goal if there is nothing to measure. Our service matrix works. Our clients are seeing improvements and to hear their excitement, joy, and regained enthusiasm is why we do what we do. We are different. This market needs different.
How Do We React?
Be customer obsessed. Relationships still matter and have value. We must continue to lead with a servant mentality and “do what we say we will do.” RCM companies must become hyper focused on creating a better customer experience from the customer’s perspective.
Deliver real results. Always perform at the highest level of capacity and never lower our own expectations.
Be innovative and disruptive. Continue to introduce new methods, ideas, and products/services. What we do today, cannot be how we do it tomorrow.
Have an ownership mindset. Take responsibility for outcomes and be empowered to make decisions that will lead to those outcomes.
Build trust. Trust increases loyalty and the willingness to stay with a company.