Analyze Your Home Care Revenue by Evaluating Service Offerings

home care revenue
Rosemark System’s home care software solutions include tools to help agencies better analyze home care revenue based on service offerings.

For many small or mid-sized businesses, tight budgets and small margins can hinder growth. In the home care industry, profitability demands that agencies routinely analyze where revenue is coming from and what areas can be maximized for greater efficiency and growth. One way to do this is to analyze home care revenue based on the agency’s service offerings.

There are numerous key performance indicators (KPIs) that home care agencies can track in order to give them a good sense of what’s working and what can be improved upon. But the agency’s tried-and-true, status quo home care offerings are one that not many think to analyze. It’s no secret that profit margins within home care are very tight. That’s why keeping an eye on how much your business is spending versus how much it is making is probably the single most important element to making sure your cost structure is sustainable long term. When it comes to revenue overview, it is essential to regularly review actual costs, many of which may be unforeseen, and compare this data to the billable rates. These data points make it extremely easy to determine what the agency’s profit margins look like.

Additionally, revenue tracking can help identify potential issues in the services you offer. For example, are you finding that most of your revenue is coming from personal and companion care, but little is coming from your nursing care services? This could be an indication that there is low-hanging fruit among this line of service. It is possible that some adjustment to the cost structure would make a positive impact. It could indicate that your pay rate is outpacing your bill rate for those services, leading them to be less profitable. Another issue could be that more marketing dollars should be allocated to these services to ensure more potential clients and referral sources know that you offer them. Rosemark’s robust reporting system helps agencies track and analyze important, results-driven data so you can steer business development with precision.

One Rosemark partner used our customized reports to find gaps in revenue and discovered that they were losing money on short shifts that fell below a certain number of hours. Their detailed analysis uncovered the opportunity and led to a conversation about raising margins for those kinds of shifts, which led to increased revenue and greater sustainability for the agency overall.

An important thing to remember when analyzing your agency’s services and revenue is that just because your margins, price structure, etc. have historically been working doesn’t mean change shouldn’t be considered in those areas in order to stimulate growth. Another agency used Rosemark’s analytical tools to uncover that short shifts were overall bad for the company’s bottom line. They were nervous about bringing this issue up with clients and explaining that they would be charging a higher rate for short shifts or asking clients to extend their shifts for the same bill rate. The agency was sure that clients would cancel services. However, every client they spoke with was agreeable to the increase or was willing to extend the duration of their services in order to keep the same bill rate. What this demonstrates is that fear of backlash can often keep agencies from innovating or making needed changes that can benefit their business and lead to growth and sustainability. However, pushing through that fear is essential and these tough conversations almost always yield good results, especially if the services you are providing are valued by your clients.

How Agencies Can Use Rosemark to Leverage Revenue Data

Rosemark System’s powerful home care software solutions help your business analyze home care revenue to make smart business development decisions that achieve growth and revenue goals. How can custom reports for home care analytics help drive revenue?

  • Reports include the ability to export almost any field to a spreadsheet to create virtually any custom report the agency wants, at no additional cost.
  • Rosemark’s Report Hub is our online reporting tool that allows users to see key metrics, such as hours authorized vs. provided reports. This user-friendly, robust KPI reporting tool is available to all of our customers at no additional cost.
  • Our Web Report provides general agency stats like how many hours you are assigning, how many clients you have, full-time equivalency reports, and other at-a-glance KPIs.
  • Need a custom report? Our support team is available to create the analytic tool you need.
  • Up to two referral sources can be listed per client, which provides accurate information to drive the development of a results-driven sales plan.

An important aspect to remember about tracking your key performance indicators is that the better the data going in, the better the data coming out. In other words, having a solid home care software solution, like the Rosemark System, allows home care agencies to input a myriad of data and then get high-quality information about that data in return. If you are interested in learning more about how Rosemark can help you track and analyze data across the spectrum of your agency services for improved revenue, contact us today at (734) 436-2631 to schedule a free consultation.

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