Bob Fazzi, Ed. D, President and CEO of Fazzi Associates, discussed the National Home Care and Hospice State of the Industry Study at Delta’s 2014 National Customer Forum. During his presentation Bob talked about the rapid change in the industry and what providers can do to be successful.
During the Balanced Budget Act of 1997, the industry lost 1/3 of the home care agencies and 50% of the revenue that was projected for home care. For those that survived, how did they do it? They did it by changing. Now is the time that significant changes should be taking place again.
Did you know that the U.S. is ranked #1 in healthcare expenditures? Healthcare costs continue to grow and grow and the industry can’t afford this growth. Why does the industry have these problems? Part of the reason is the way our healthcare system is structured.
- Service specialization dominates
- Payment is specialty and silo focused. Everyone who serves the patient gets paid.
- Patient is viewed as a revenue source.
- Quality and cost are rarely related.
- Health care is highly fragmented and not an integrated system.
According to Bob, the industry needs to deal with these issues and create systems that will deliver health care at lower costs with higher quality outcomes.
What are some of the issues you need to look at as you begin looking at the changes taking place? You should be looking at competitive insights on your competitors and the industry so that you can make informed decisions. And you should be ready to respond to Strategic points.
Through a four part blog post, Delta will provide Bob’s insights for the following questions:
- What do the industry changes mean for you?
- What should you do about the changes?
- What is the rest of the industry doing?
- What should you do for the future?
Delta invites you to download the free National Home Care and Hospice State of the Industry Study to have the trend and best practices you need to manage your agency.