Home Health Regulatory Changes Drive Outsourcing Considerations

April 1, 2019

outsourcing areas of opportunityThe home health industry will soon be affected by a significant change in payment reform with Patient Driven Grouping Model (PDGM). Because of this reform, there are questions about when to continue develop solutions in-house, versus outsourcing solutions to a local company.

PDGM is expected to launch in January 2020 and will utilize a 30-day payment period as opposed to the current payment structure of payment for each 60-day episode. The final rule will also have 432 Home Health Resource Groups (HHRGs), which is 216 more groups than originally proposed. While CMS projects that Medicare payments to home health agencies in calendar year 2019 will increase by 2.2%, is this enough to cover the overhead burden placed on agencies and staff to support PDGM? This is the question facing many home health agencies, and it can be beneficial to identify an outside resource to help find the answer.

Through optimization of technology and support staff in offices worldwide, Mueller Prost has become a cost effective and streamlined solution for home health and hospice providers nationally. By leveraging billing and accounting services, as well as year-end tax and cost report filings, Mueller Prost clients have saved considerable overhead costs, reduced turnover and hiring needs, and have gained access to real-time industry updates. Mueller Prost understands the importance of patient focus.

"This home health final rule focuses on patient needs and not on the volume of care,” CMS Administrator Seema Verma said in a statement. Seema’s view, noting a focus on patient needs, demonstrates the need to look deeper into your organization and identify the basis of outsourcing in order to uphold the integrity of organization’s mission.

Here are some key points to consider when deciding whether or not outsourcing is the optimal solution for your organization:

  1. Identify Your Organization’s Core Competencies (and where you need help succeeding)
  2. Cost
  3. Staffing
  4. Standardization and Streamlining

There are several areas of opportunities for outsourcing, including:

  1. Accounting
  2. CFO/Controller Services
  3. Payroll
  4. Billing and Collections
  5. Intake
  6. Scheduling
  7. Coding
  8. Data Processing
  9. Human Resources
  10. Information Technology

Eric Hansen PT, Managing Partner of Specialized Home Care can attest to the value Mueller Prost brings to this industry. “We were looking for a “one stop shop” to provide our billing, accounting, cost reporting and tax expertise and do so with a company that was cost effective and specialists within home health. Mueller Prost has been an excellent resource to our organization, partnering with us to help take us to the next level. The staff at Mueller Prost have been there to support us during software transitions, industry challenges, and kept us current with new regulatory changes. Mueller Prost is always just one phone call away”, Eric has said.

Looking to outsource? Click here or contact Tiffany Karlin or Melissa McCall directly to start a conversation.

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