Diversifying Services: A Matter of Survival for Home Health
Today, more than ever, home health agencies must diversify if they are to survive. It makes no difference whether you are Private Pay or a Medicare-certified home health agency, diversification will build the strong fiscal foundation you need to weather this current and any upcoming economic storms.
For Private Pay agencies, this means investigating new opportunities that might exist within your marketplace and offering unique services that that will immediately and directly appeal to customers in your community. For Home Health and Hospice agencies, diversification means expanding your horizons and seriously considering the benefits of starting up a Private Pay agency or a Durable Medical Equipment agency, or both.
There are several ways to determine what your community needs and is willing to pay for. First, survey your existing clients. Offer them a theoretical list of optional services and ask them, on a scale of one to ten, which of these services appeal to them. Additionally, keep a log of inquiries from the community and existing customers about the services they are seeking. If they ask for something that is not currently in your service roster, make a note of it and add it to your list of potential new areas of business. Investigate your competition and see what other agencies in your area are providing. Make a note of similarities as well as the differences in their offerings. Are there any loopholes in services that you could step in and provide? Is there something they are offering that you could truly do better?
Once you’ve completed your research and are confident you can offer a new service that will be well received by your buying public, make a detailed outline of exactly how you will design, staff, and launch your new concept. Clearly identify how your new service will be offered and sold to your target audience. Decide who will manage the new program and how new staff will be trained. Once you’ve sorted out those nuts and bolts, figure out what your marketing and sales message will look like. Finally, determine the costs and figure out how revenue will be tracked. Most importantly, clearly identify what would indicate failure and what would point to success. Build a Dashboard and commit to it.
As my mother used to say, when you do something, do it with brilliance. Nowhere is this truer than with diversification. Diversification done well will increase your market share, yield additional revenue streams, and add positive cash flow to your bottom line. From this perspective of renewed strength, weathering financial storms look like a tempest in a teapot.
Category: Agency Startups, Ginny's Blog, Specialized Support
[...] Surviving and thriving in this environment is possible if thinking can occur outside the “Medicare box”. It is time to gather the data, re-envision the agency, redesign the strategic plan and implement for the future. For additional ideas on how your home care agency can gain the competitive edge, read Private Duty Concierge Services May Be a Program for You and Diversifying Services: A Matter of Survival for Home Health. [...]