If you want to optimize your registry’s revenue streams to end the year on a good note, consider offering multiple lines of service. This was the main topic of our last webinar, Breaking Down The Different Methods of Home Care Delivery, with Polsinelli.
Similarly, you might remember one of the panels at the FUTURE event with Home Health Care News was called: Alternative Home Care Employment Models- From Workforce Sharing To Self-Directed Strategies.
Today, we’ll talk more about:
- The benefits of self-direction as a service (CDPAP and more)
- The benefits of a virtual marketplace
- The benefits of a home care agency model
The benefits of self-direction as a service (CDPAP and more)
If you want to expand your revenue streams as a home-based care entrepreneur, look no further than self-direction.
What is self-direction?
Self-direction (or consumer-directed care) is when a client is in charge of their own care. Consumer-directed care programs are generally administered at the state level via Medicaid programs.
Clients can pick and choose who their caregiver is, often a friend, family member, or someone they meet at a third place like a church or grocery store, as Lucas O’Connell of AssuranceSD shared in the panel.
What does self-direction look like?
This model of care gives clients the autonomy to independently manage their relationships and schedules. Oversight of care is also not permitted.
From the state’s perspective, workers providing care in this way are often viewed as independent contractors. For any caregiver registry owner, does this sound familiar?
If you’re interested in offering this model of care, it’s important to start with a new LLC, business name, address, etc… From a legal standpoint, you should partner with an experienced attorney who knows this space well. Consider one of our partners, Polsinelli.
Why you should offer this model of care
This gives you the opportunity to care for more people in your community. The consumer-directed model is a Medicaid program, some states call it CDPAP or a Consumer-Directed Personal Assistance Program. This means you can care for people of all ages who qualify and enable them to use caregivers that they know and trust.
The turnover rates are low. O’Connell shared, “The turnover, the attrition within the self-direction workforce, is notoriously low for a few core reasons…[T]he interview itself and the recruiting is conducted by the individual receiving services, often in tandem with family or what we call a circle of support.” Once these caregivers are identified, the relationships last long-term, making it an easy add-on for your business.
The benefits of a virtual marketplace
You’ve heard of virtual marketplaces before. But what exactly are they?
What is a virtual marketplace?
A virtual marketplace, according to Angelo Spinola of Polsinelli, is “an online platform where a person or entity establishes a marketplace for a particular service and consumers in need of such service.”
From our webinar with Polsinelli, they put together a table of the legal ease of starting a home care registry by state.
Make sure to check with your state regulations before implementing or starting a new service line.
What does a caregiver virtual marketplace look like?
For this industry, the easiest example to point to is Care.com. Caregivers can create a profile, upload their experience, and search for clients who have postings on the platform.
Others have since emerged, including CareLinx by Sharecare, Papa, and Mable. Put simply, think of virtual marketplaces as the Uber for caregiving.
Why you should offer this model of care
You can be creative in the features and offerings users can search for. Care.com, for example, offers a wide range of care-related services like babysitting, pet walking, and others. It gives care workers the opportunity to explore what they like to do at their convenience.
You can stay ahead of current trends. Many families are flocking to the grey and online marketplaces to shop for caregivers outside of more traditional models of care. Essentially they’re building their own care networks. With a swelling demand for care, the need for caregivers will only grow. Offering a channel for families to find what they’re looking for that’s affordable will help you further navigate these trends.
You can expand beyond your local market. With virtual marketplaces leveraging the internet as the workplace, you can expand to as many markets—that allow the model—as you want.
Lower turnover by giving caregivers what they want: faster, better pay. “Leverage the technology to get them better pay because they can negotiate their rates with faster pay. We often do same-day pay with our caregivers,” shared Francesca Rinaldo, head of clinical strategy for home care at Sharecare. When caregivers can set their pay rates to what they feel their experience deserves and get paid on their own terms, they’ll keep using the platform.
The benefits of a home care agency model
And of course, we couldn’t leave out the traditional home care agency model.
What is traditional home care?
This is the default setting that most people think of when they hear “home care.” Home care agencies employ caregivers with a W2, and supervise them at all stages. From the phone screen to client introductions, to training and scheduling, you can walk a caregiver through this process hand-in-hand.
What does a home care agency model look like?
Clients can pay for care in a variety of ways outside of self-funding care. This model gives flexibility for them, with payment options like long-term care insurance, the VA, Medicaid, Medicare Advantage, community and religious organizations, and more.
Agencies work with clients and their families to create customized care plans. They explain the plan and situation in-depth, preparing the caregiver for their first visit. The process is collaborative throughout. With caregivers being employees, home care owners have the opportunity to ensure that caregivers have proper training (or that they receive it), professional development, and more.
Home care owners and their teams work with clients and caregivers to determine schedules, billing rates, pay rates, and arrangements for back-up care. A pretty stark contrast to the caregiver registry model.
Why you should offer this model of care
Provide a world-class employee experience. As a business owner, you have a vested interest in the health and wellness of your employees. With a home care agency, you can take back more of that control with caregivers, and give them resources for self-care, etc. “Now, we’re hearing a lot of buzz about well-being. Meaning the well-being of the organization or the whole person, so leaning in and taking a look at, what do the social determinants look like for each employee? Financial, health, the mind, body, and spirit,” said Cristina Andrews, senior director of professional services at Axxess in the panel.
Do more with more. The private pay aspect of home care still stands as the majority of revenue share, and this model tends to have the highest billing rates. You can utilize higher billing rates to improve caregiver pay, optimize training programs, and invest more energy into client and caregiver wellbeing.
The future of home care is in your hands
We’ve gone over each model of home care and wanted to know what you thought. Maybe you read this because you were curious, do any of these models interest you as a new business adventure?
At Ally, we’re invested in providing you with the registry management platform and support you need to be successful with your home care business. And that also means sharing what could come next.
Watch our webinar on each model here.
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