Operating a home health or personal care agency can be very rewarding if you or your staff know what you are doing. If you don’t know exactly what the job entails as a leader, administrator/owner, then you’re headed down the road to closure.
There are many agencies throughout the United States that are in jeopardy of closing because the Administrators, Managers or Owners have no clue in how to operate a home health or homecare agency.
Their main focus is “greed”, how can I get my hands on “Free money from the government”! Surprise, there is no “Free Money”. Medicare/Medicaid Reimbursement is based on agencies providing Quality care to people who are in need of their services.
According to a CMS Comprehensive Error Rate Testing (CERT), billing errors from home health agencies account for a loss of $41.1 billion from Medicare each year. And for the past three years, more than $130 billion. There are 6 other Mistakes agencies make that can close your agency forever and they are:
1. Poor Documentation of Care- When Surveyors cite an agency for poor documentation that indicates that staff may not have been trained properly, charts have not been audited by the GB, and Clinicians on a quarterly basis. As the person in charge, you need to be sure that all patient charts have proper documentation of care for all clients. Do your own chart audits to be sure that staff are following proper guidelines and regulations related to documentation.
2. Not knowing what your position entails- If you are new to leadership and home care, you will find it difficult to know and understand all the tasks you must accomplish each day to be sure your agency operates properly. Therefore, if you don’t know what you’re doing, try seeking assistance from a home health consultant or mentor.
3. Not having a care plan for each client- This goes with documentation. For Personal Care agencies, it is the responsibility of management to check the charts on a quarterly basis for care plans and to be sure the PCW is following the care plan as noted. All changes have to be initialed or noted by the consumer. Make sure the Plan of care is signed by the Supervisor, Client, and PCW and dated by all three every time there is a change with the POC. For Home Health Agencies, it is a part of the licensed Clinicians to make sure the Plan of care is correct, and up to date. The Patient and CNA must inform the RN if there are any changes to the POC that the RN is not aware of. There is no excuse for the healthcare professional to not be aware of whats in their client’s chart.
4. Taking on a client your agency is not able to care for is a definite way to close your agency. There are so many Administrators that take on clients they don’t know how to care for. Their staff are not properly trained on the care and needs of their clients. The complexity of the client’s case is way beyond the agency’s scope of practice. Here’s a good bit of advice. Please do not take a client if you cannot care for him or her properly. If you do take a client that is beyond your scope of practice, you are opening your agency up for a huge lawsuit. A lawsuit can shut you down. Medicare/Medicaid, and the state in which you operate will pull your license and accreditation forever. Remember you could jeopardize your Clinician’s license as well.
5. Too much Expenses- When starting an agency don’t try to go for the glitz and glamour! Keep It Simple to start out and as you become successful, then go for a more polished look. Be careful though! CMS does not take too kindly of agencies putting too much money on the agency rather than in the agency by paying for good quality staff, and supplies. A year after being in business and operating my consulting business from home, I moved my business to an office. I spent a total of $400.00 to furnish my business and it looks great!!!! I shopped at yard sales, second-hand stores, and Craigslist to find the bargains to fit my budget. I know of another consultant that spent $3,000 in furniture, and equipment. Her overhead was enormous. She started out with staff as well. Within 9 months she had to break her expensive lease and lay off her staff. She now has a part-time office manager and sold most of her office furniture also. So be careful!
6. Last, Not having a Plan for Growth- In my leadership Workshop I conducted in 2019, I talked about creating a system to grow a successful business. If you don’t take the time to write out a 1–2-page business plan for your purpose (not the financial investors), you will not know what direction you need to go in order to grow your business 1 year from now, 3 or 5 years from now. What will happen to your agency if something happens to you? Will it continue on or will all the hard work you put into your agency be lost because no one was put into place to keep the agency going, or even know how to operate the agency. I won’t even mention the financial problems that will arise from the lack of planning for the future. So, there you have it, 6 Mistakes that Can Put Your Agency Out of Business and How to Avoid them. Good luck! To Your Success!