Hospice Budgeting with - National Association for Home ...

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Hospice Budgeting with Benchmarks: Why Do It?

Continuing Education

The planners and presenters of this activity disclose no relevant relationships with any commercial entity pertaining to the content.

? Nurse attendees may earn a maximum of 15.5 contact hours ? Accountant attendees can earn up to 18.9 CPEs

Accreditation Statement

NAHC is accredited as a provider of continuing nursing education by the American Nurses Credentialing Center's Commission on Accreditation.

NAHC is [also] approved by the California Board of Registered Nursing, provider #10810.

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Commercial Support provided by Brightree, Excel Health Group, Healthcare Provider Solutions, and Simione Healthcare Consultants.

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Objectives

? Identify direct and indirect costs and understand the relationship of costs to multiple reimbursement models.

? Gain a better understanding of non-clinical and back office costs and become able to evaluate operational cost structure compared to industry benchmarks.

? Utilize industry benchmarks to evaluate the operating costs and revenue.

? Create buy in from staff and management on cost efficiency objectives.

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What is a Benchmark?

? A Standard or a set of standards, used as a point of reference for evaluating performance or level of quality.

? Source:

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Data Drives Solid Financial Decisions

Limitations of Performance Data

A thermometer reading would have little value as a measure to your health. If you didn't know 98.6 is the normal temperature. ? Deluged with data

without meaning. ? Data without context

is just a bunch of numbers.

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Where Do We Start?

? All Financial Cost Data should be easily accessible and broken out.

? General Ledger ? Payroll Software

? Identify Critical Financial KPI's.

? Keep it Simple ? Focus on Revenue & Cost Drivers

? Automate your Reports.

? Excel ? Reporting software's ? Outside vendors

? Compare to Benchmark Data.

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Where to Get Started?

? Compare to Benchmark Data.

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Benchmark Comparisons

? Research benchmark sources are available:

? NAHC, NHPCO, Simione Financial Monitor, OCS, SHP, MVI, Cost Report data.

? Understand data elements and calculations.

? Need to ensure apples to apples comparison.

? Who are you going to compare to?

? Geography, Payer Mix, Profit Status, Agency Type, Revenue Size.

? Remember benchmarks are the median.

? Always strive to be in the top 10 to 20%.

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