How Financial Services Should Support Home Healthcare Operations-
Here are some accounting and financial deliverables as they relate to the operational fulcrums and essential cycles of home healthcare.
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Fulcrum
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Some Key Financial Deliverables
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Distributed nature – geographic and in services
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· Multi-unit reporting & Standards
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· Service/Program Profitability
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· Price, Volume, Mix analyses
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· Segregation of Direct & Indirect costs
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Talent & knowledge critical
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· Costs /visit /hour, by skills, indirect burdens
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· Productivity analyses- direct & indirect
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· Incentive & benefit analyses
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Transactional
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· Gross and net profit margins reporting
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· %s, Avgs, Trends, Run rate projections
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· Case mix and indirect what-if analyses
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· Activity based costing & budgets
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Three ‘flywheel’ cycles
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Some Key Financial Deliverables
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Patient care
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· Revenue and referral reporting
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· Analyses of key activities
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Be a Responsive Partner
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Talent management & payroll
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· Timely information adequately segmented
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· Regulatory support
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Be Knowledgeable & Consistent
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Reimbursement & financial
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This is home base – all of these are needed:
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Accuracy, Technical Know-How, Robust information, Projections
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Be Current & Anticipate what’s next
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If you have ‘top-notch’ financial services you will find it -
- Allows for cohesive recommendations and action plans
- Creates a dialog on effectiveness
- Establishes clarity for the enterprise
If you have a Financial Services area that is not providing these services you may see one or more of the following problems:
- Long or late monthly close process
- Lack of prospective information
- Inability to link financial results to key metrics
- Hidden cash leakage
- Underutilized or poorly deployed assets
- Conflict or distrust of financial results – this includes the ‘many-truths’ problem where every department has its version of the numbers
- Limited financial leadership or ability to partner within the enterprise
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