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Creating a Four-Star Facility Without Increasing OverheadBy Cathy Sparling
Creating a true self-pay model, which offers a full range of assistance to patients, is usually used by only the larger assisted-living facilities. For many facilities, providing assistance in daily living, such as hygiene, dressing and feeding, is often taxing. And, for the vast majority of communities, it's very expensive to maintain staff with the necessary skills to offer services on demand. The answer for many facilities lies in a partnership with a healthcare-services provider accustomed to offering precisely these services. A well-founded partnership benefits the residence and the provider and gives the consumer access to all the comforts of a four-star luxury facility plus supportive healthcare. The right partner can provide a full range of services and can create a pricing and billing model that fits the individual needs of each institutional client. There are options that range from fully staffing the facility to simply providing services to the residents. The right provider can enable the facility to seamlessly expand the range of services provided. In addition, the provider can help the facility market the new services by first creating awareness of the specialized care and extra benefits. Once clients and their families know the services are available, they can identify their needs and a desire to use them. Facility managers often find the relationships they form with healthcare-services providers may also be useful throughout the residence, particularly in tight employment markets, or in areas where skilled help is always a premium. Occasionally the facility may need to fill in for vacationing staff (or it may have a limited number of staff to begin with) or it may need to staff for an acute episode for a limited time. Once a trusting relationship is established with a healthcare provider, staffing the facility will be more efficient using this resource for special and even routine needs. To enter the four-star echelon, the facility merely has to begin offering a menu of services it would not ordinarily provide. It can market such services aggressively, or simply make it known that they are available on request. Typically, these services would include special care for the frail elderly who may need extra rise-and-shine assistance or help with daily essentials outside the normal scope of facility care. This might consist of weekly medication management, special help with hygiene such as a hair wash and set, or assistance with activities of daily living beyond normal dressing and ambulating. The facility can offer health classes, such as special nutrition classes and many other programs to build cooperative relationships and identify a likely partner. The benefits of this service are seen in customer satisfaction, which can boost occupancy and increase resident retention. Offering the extra services provides an added value to clients, which builds loyalty and satisfaction. Another benefit is modeled on the managed-care plan, in which a fee is added to the actual cost (most providers take full responsibility for its manpower, i.e., salary, insurance, withholding tax). Whether or not to mark up the service cost remains the choice of the facility. In cases where the facility is offering the services primarily to maintain a competitive edge, rather than an additional profit stream, the provider can bill patients directly. However, if additional financial benefit is needed, a percent of profit can be negotiated. There is considerable flexibility, since these services are offered on a private-pay basis only. To get started, begin interviewing quality healthcare service providers. Check websites, examine manuals of care standards and check references thoroughly. With a little research, choosing the right provider will become clear. Upgrading services in a matter of weeks can increase revenue and occupancy to create a more successful facility. Cathy Sparling is vice president and COO for Arcadia Services, a division of Addus Healthcare. She has more than 15 years of both clinical and business management experience in home care and medical staffing. Sparling can be reached at (248) 352-7530 or e-mail csparling@arcadiaservices.com.
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One
of the fastest growing segments for many healthcare providers is self-pay
paraprofessional assisted care. This growth has been driven by the increase in
wealth in past decades, which enables more people to pay for assistance with
activities of daily living. It promises to be a huge growth area as the U.S.
population continues to age. While much of the new activity is seen in the
home-healthcare sector, it is becoming a viable option for assisted-living
facilities.|
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