Increase business with rehab, subacute services
Increase business with rehab, subacute services
Managed care interested in flexibility and cost
Private duty providers seeking to increase managed care business should consider competing head-on with subacute and rehabilitation services, says Alison Cherney, a Brentwood, TN-based health care marketing and strategy consultant. "There is a large opportunity to reposition product lines and get a bigger chunk of business and compete with subacute and rehab [services]." Depending on the level of care and kind of service provided, home care may not only be a better deal economically, but also offers higher patient satisfaction, she adds.
To implement such a strategy, first have a fact-finding meeting with managed care case managers and medical directors, Cherney recommends. "Ask them where [they are] spending subacute and rehab dollars. Present options where home care can save money and give better patient outcomes."
"Case managers don't understand how flexible home care can be, both in providing different levels and types of care."
Private duty providers may first have to overcome case managers' negative perceptions, Cherney cautions. "I know from doing market research for providers that private duty doesn't have [the best] reputation [among managed care organizations]. The old private duty [focused on] keeping the longest shift for as long as possible [making home care a more expensive option than subacute and rehab]."
Depending on care intensity, subacute and rehab can each cost $300 to 600 daily, says Cherney. While 16 hours of RN care can outpace both, an RN-home health aide and hourly-visit service mix could compete very favorably on price, she adds.
To land a contract, providers may have to offer creative contracts and take-on risk, Cherney advises. "In health care, [rather than offering trial periods like other industries] we just say'get divorced and get married to me!' You may have to propose a trial period and guarantee they won't spend over a certain amount over a period of time."
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