A New Dawn in Home Care and Hospice: Will Your Agency Be Hot with Activity or Left Out in the Cold?
Mergers and acquisitions in healthcare will continue to accelerate, with many occurring at the health system level to achieve economies of scale and stronger bargaining power among payers. What is your agency doing as these larger entities forge ahead to meet the demands of accountable care?
David Berman, CPA, CVA, CGMA, Principal, Simione Healthcare Consultants, said home care and hospice leaders should expect a continuing increase in mergers and acquisitions. For this reason, home care and hospice leaders need to initiate and fortify existing strategic partnerships to secure the role of their agencies among provider groups who are forming Accountable Care Organizations (ACOs). “At the very least, home care and hospice organizations should be participating in network activities to coordinate care in their immediate market, where they can assume more financial risk for managing the health of a defined population,” Berman says.
As Simione’s lead consultant facilitating mergers and acquisitions in home care and hospice, Berman expresses concern that agencies without affiliations and partnerships will be left out in the cold. “Health systems, both large and small, are making big moves to build infrastructure. In addition to investments in facilities and equipment, some of their top capital expenses are information technology, and they seek connectivity in their relationships to facilitate growth in market share. Post-acute care will be critical to keeping costs down both inside and outside of the hospital; home care, hospice and long-term care providers need to be plugged in with these initiatives to pave the way for continued referrals and admissions,” Berman explains.
“The time has arrived where hospitals have to rationalize every service and look to outpatient and home-based services to achieve more cost-efficient care at competitive prices,” Berman adds.
For providers of home care and hospice, it’s time to reaffirm quality and financial goals to improve readiness to become a more integrated partner with the acute and outpatient care leaders in your service area. Have you approached these relationships in ways that will secure home care and hospice referrals when larger system decisions are being made? Have you documented and communicated your quality metrics to show the value you can bring to the system’s goals and the larger accountable care arena?
Whether you’re looking to improve your financial performance or streamline operations, Simione’s expert teams will guide your agency to improve clinical and operating performance. With specialists in mergers and acquisitions, including financial, clinical and operations due diligence and valuation services, we can also support your successful integration plans to help your agency advance to the next level of accountable care.