Evaluating and improving financial performance for COVID-19 and beyond
The coronavirus impact on home health and hospice, and achieving financial success in an uncertain future.
As the home health and hospice industries continue to navigate the COVID-19 pandemic, providers across the country are making remarkable strides toward adopting this new normal. Home care and hospice are being utilized more effectively—with organizations doing their best to keep people out of hospitals, out of facilities, and only treating the patients that need to be treated.
Now that we’re experiencing the second wave of the virus, with an uncertain future, we’re taking a deep dive into how to evaluate and improve your financial performance during this difficult time—and beyond. From the impact on PDGM to available stimulus funding, we’ve partnered with Simione Healthcare Consulting to give you the expert approach to achieving financial success in a COVID-19 world.
A quick update on PDGM numbers.
Looking at PDGM data for the first quarter of 2020 (through March 31), home care agencies have consistent gross and net margins compared to where agencies were before the implementation of PDGM. While some agencies were not yet impacted by COVID during that time period, others started seeing effects in mid-March.
Overall margins and benchmarks in home care.
There may be a slight increase in the Medicare net margin during this first quarter, but this is due to an increase in early institutional stays in the first 30 days. This number will likely trend down continually through each month.
- Overall gross margin: 42%
- Overall net margin: -3%
- Medicare gross margin: 49%
- Medicare net margin: 15%
- Case weight mix for the national benchmark: 1.13
- LUPA benchmark: 13%
Based on client’s own data and sources. Results may vary based upon particular circumstances.
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