The Big Five Cost Improvement Strategies. Debbie Crowe, BA, LNHA, The Crowe Group, LLC Sally Parnell, RN, MSN, Gentiva Health Services, Inc.
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1 The Big Five Cost Improvement Strategies Debbie Crowe, BA, LNHA, The Crowe Group, LLC Sally Parnell, RN, MSN, Gentiva Health Services, Inc.
2 Session Objectives Identify key areas of cost management for hospice operations Learn to translate and understand monthly cost variances utilizing standardized metrics and templates Develop strategies for reducing day of care expenses through cost management and effective utilization of the Big Five by improving patient care outcomes
3 Metrics Key Terms Day of Care - DOC Per Patient Day PPD Direct or Variable Costs Indirect or Fixed Costs EBITDA
4 Participant Worksheet Direct or Variable Expenses per Day of Care The Big Five Worksheet Medicare Reimbursement DOC (Routine Home Care MSA) LABOR PHARMACY DME MED SUPPLIES PATIENT CARE MILEAGE $ Indirect or Fixed Expenses per Day of Care Lease and Utilities Administrative Labor Education and Professional Office Equipment Supplies EBITDA Interest, Taxes, Depreciation, Amortization (ITDA) Bad Debt THE BOTTOM LINE $
5 Participant Worksheet Medicare Reimbursement DOC $ (Routine Home Care MSA)
6 Identify Key Areas of Cost Management Labor
7 Participant Worksheet Medicare Reimbursement DOC $ (Routine Home Care MSA) LABOR 55.00
8 Identify Key Areas of Cost Management Labor Pharmacy
9 Participant Worksheet Medicare Reimbursement DOC $ (Routine Home Care MSA) LABOR PHARMACY 6.50
10 Identify Key Areas of Cost Management Labor Pharmacy DME
11 Participant Worksheet Medicare Reimbursement DOC $ (Routine Home Care MSA) LABOR PHARMACY 6.50 DME 3.50
12 Identify Key Areas of Cost Management Labor Pharmacy DME Medical Supplies
13 Participant Worksheet Medicare Reimbursement DOC $ (Routine Home Care MSA) LABOR PHARMACY 6.50 DME 3.50 MED SUPPLIES 2.50
14 Identify Key Areas of Cost Management Labor Pharmacy DME Medical Supplies Mileage
15 Participant Worksheet Medicare Reimbursement DOC $ (Routine Home Care MSA) LABOR PHARMACY 6.50 DME 3.50 MED SUPPLIES 2.50 PATIENT CARE MILEAGE 2.00
16 Participant Worksheet Medicare Reimbursement DOC $ (Routine Home Care MSA) LABOR PHARMACY 6.50 DME 3.50 MED SUPPLIES 2.50 PATIENT CARE MILEAGE 2.00 $48.50
17 Indirect or Fixed Costs Building and Utilities Administrative Labor Education and Professional Office Equipment and Supplies
18 Participant Worksheet Indirect or Fixed Expenses per Day of Care Lease and Utilities 3.00 Administrative Labor Education and Professional 1.00 Office Equipment Supplies 1.50 EBITDA $33.00 Interest, Taxes, Depreciation, Amortization (ITDA) 3.00 Bad Debt 1.50
19 EBITDA Interest Taxes (or fundraising) Depreciation Amortization
20 Participant Worksheet Indirect or Fixed Expenses per Day of Care Lease and Utilities 3.00 Administrative Labor Education and Professional 1.00 Office Equipment Supplies 1.50 EBITDA $33.00 Interest, Taxes, Depreciation, Amortization (ITDA) 3.00 Bad Debt 1.50
21 Bad Debt Aged Accounts Receivable External Audits
22 Participant Worksheet Indirect or Fixed Expenses per Day of Care Lease and Utilities 3.00 Administrative Labor Education and Professional 1.00 Office Equipment Supplies 1.50 EBITDA $33.00 Interest, Taxes, Depreciation, Amortization (ITDA) 3.00 Bad Debt 1.50 THE BOTTOM LINE $28.50 DOC
23 The Bottom Line No Margin No Mission
24 Labor Scheduling Flexible scheduling to meet the patients needs Flexible scheduling to meet the clinicians needs Patient Caseload Patient need based
25 Pharmacy Formulary management Patient-centered care Role of the IDG Delivery cost management
26 Durable Medical Equipment Formulary management Patient-centered Risk sharing Delivery Competitive bidding
27 Medical Supplies Formulary management Patient-centered Clinician driven Product evaluation Inventory/waste management
28 Patient Care Mileage Patient-centered Verification process Reimbursement formula
29 The Big Five Efficiency Effectiveness
30 Thank you!
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