Home care revenue up by 10% in 2001, report says
Overall home care industry revenue growth in 2001 was 10%, a decrease of 3% from the revenue growth experienced in 2000, according to results of the "2002 Financial Performance Survey Report," an annual benchmarking survey of financial and management practices conducted by the Alexandria, VA-based American Association for Homecare.
Other findings included:
- Nine percent of the companies participating in the survey that reported making an acquisition experienced an overall growth rate of 16%, which was down from 31% reported in 2000. The average growth rate for these respondents on continuing business was 8%.
- Overall accounts receivables days outstanding increased in 2001, the first increase since 1998.
- Medicare and Medicaid represent 46% of home care revenue.
- Hospital ownership of home health firms decreased to 25% in 2001, a 10% drop from the 35% figure seen in 2000.
- A new section on clinical efficiencies reveals that 52% of a respiratory therapist’s time is spent on patient visits, with the remaining time focused on documentation, communications, and scheduling.
The report, which reflects input from 119 firms representing $3 billion in total annual revenue and operating 1,686 locations, is available from the American Association for Homecare. There is no charge for study participants. Association members can purchase the report for $250, and the price for non-members is $500. To order a copy, contact Allison Barton-Kramer at (703) 535-1883 or order through the association’s web site at www.aahomecare.org.