AT & T vs. Home Health Providers


Published: 7/25/2017

Just as AT&T, legacy style, volume based home health agencies have an immediate need to reduce costs, increase quality, and win favor with payers and patients. With the implementation of VBP it is certain that 50% of the providers in Nine States will experience a substantial revenue decline in January 2018.

 As a result, hospitals will need to significantly change their cost structures, and rely on predictable cost effective post-acute partners to assure the continuity of patient care services. 

 Just as streaming video disrupted cable television, new software-assisted options in OASIS Quality Assurance and data driven census management are successfully replacing the status quo of the past twenty years. Higher episode margins, lower revenue risk, and nurses that go home without after hour’s documentation are quickly becoming the future of home Health Care.

 Organizations who continue to cling to their legacy process with no clear strategic response on how to embrace the future of the VBP program, will fall prey and lose their market share to those who embrace the new processes that are going viral in the health care at home arena.

 Hospitals are partnering with innovative, forward-learning, value-based providers as their preferred option. Just like AT&T, hospitals’ high fixed costs make it very difficult for them to compete on price. When hospitals can partner with downstream providers who provide substantial efficiencies of care with the ability to scale those efficiencies to the hospital’s needs, they can compete on price and meet their VBP mandates with CMS.

 Volume-based home health providers could attempt to go head-to-head with health care’s nontraditional innovators, and develop their own low-price, high-access services. However, the fixed costs of volume based providers all but drown their ability to do this.

 The costs of talent, technology, time, and other infrastructure needs are so expensive, it often requires the Volume Based provider to search for third party entities that can provide the required efficiencies at an affordable price.

 That third-party innovator is OperaCare, based in Socorro NM, and founded by a former State of California OASIS coordinator, who was immersed in the first version of Value base purchasing called Pay for Performance.

 Knowing exactly what CMS was/is looking for, a third-party software application without parallel in the industry was built specifically for the implementation of the IMPACT Act and Value Based Purchasing. 

 The Software supported processes boast a 50% reduction in cost for OASIS events, a 25% increase in patient care capacity, and reduced labor costs through acuity based staffing, and data driven census management. Maybe most importantly, our automation of the OASIS process sends nurses home at night with no afterhours charting to do- giving them their life back!