Let’s face it, home and community based care takes a lot of blood, sweat, and tears to broker success. So, regardless of the amount of time you have been in business, you may be at the point of considering a sale. If you want to position the agency well for potential buyer, then let’s look at some of the important data to consider on the clinical end of your business.
When a buyer is considering a sale, here are some of the critical clinical items that will be evaluated and will affect the dollars you receive for your agency.
- Your Clinical Process: What are operations from the time of the referral until the time you build the RAP and final. Is it consistent between clinicians? Are you efficient in the process from referral to RAP. This item may not be as important if the buyer is an established agency looking to expand, but it may determine who on your current staff still has a job after the merger.
- Who Does The Coding And Oasis Review? You may be small with the individual nurses coding and reviewing Oasis without certification or formalized training. It would be wise at that point to start letting an outside source complete the coding and Oasis review to see how well you are doing on accuracy and revenue. You may find you have a lot more potential in revenue per episode. Non-certified coders tend to get in the rut of using the same codes whether they are technically the best code for the problems of the patient.
- What Is Your Expectation Of Clinical Efficiency? Some agencies track clinical efficiency well and know what to to expect for each clinician in visits per day. Others, typically those paying by the visit, due not track efficiency. This is important so the buyers know what kind of output from each clinical discipline.
- What Is Your Coordination Of Care Process: For some agencies, it is quite formal and scheduled. For others, the clinicians talk back and forth about the patients. Who is responsible in your agency to document it? Are the aides typically a part of routine coordination of care? Many times, agencies will state that clinicians communicate very well and often, but no one has documented it. This is something to firm up prior to putting yourself out there for sale.
- Do All Clinicians Function Within Scope Of Practice? This is such a big deal in the PDGM world. Buyers want to see you have made changes to accommodate for removal of the therapy add on and diagnosis coding changes. Are your nurses, therapists, and aides doing everything within scope of practice at a visit? Is that even an expectation? Do your aides routinely have coordination of care with therapists on the patient’s plan of care or not? They absolutely should. The therapists should be instructing and delegating what is appropriate to the home health aides. Therapists need to be comfortable with medication teaching and dressing changes just as nurses need to complete therapeutic exercises during visits. Buyers don’t want to see lots of extra visits made unnecessarily. So, tighten up your clinical operations and start slowly. For example, there is no need to send a nurse out to do incisional care on a post-op knee when you have a therapist in the home. It is well within scope of practice, but most still send the nurse.
Consider An Operational Assessment To Get Yourself Ready:
Ultimately, it is very common for buyers to request a due diligence before purchasing your agency. An operational assessment from you prior to that will help get you ready for that process including being able to understand the value of your agency and what you should expect to receive for it. It also has data readily available to the buyer so you can expedite the sale. It also allows you to show the value of the employees you would like to see stay on after the change in ownership. Call Kenyon Homecare Consulting today at 206-721-5091 or contact us online to see how we can help you get your agency ready for sale.