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Stabilize Agency Cash Flow With Payer Source Diversification

Payer Source Diversification Blog Post

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"If your agency is one that relies heavily on private pay clients, now is not the time to panic but it is the time to get strategic about optimizing private pay cash flow and diversifying payer sources."

Courtney McCormick
Director of Client Success - AxisCare

 

We recently heard from AxisCare CEO, Todd Allen, in this blog post about 2023 Home Care Predictions that as an economic recession looms, we may see a decreases in private pay business. If your agency is one that relies heavily on private pay clients, now is not the time to panic but it is the time to get strategic about optimizing private pay cash flow and diversifying payer sources.

 

Start with a private pay strategy.
 
As the Director of Client Success at AxisCare, I meet with agency owners every day to discuss back-office systems and offer solutions to make their business as efficient, successful, and profitable as possible. When billing private pay, I cannot stress highly enough the importance of minimizing your billing cycle. Stop sending invoices and waiting for paper checks to come in. This outdated practice weakens  the financial stability of a home care agency and only ensures you spend your time chasing down overdue payments that may or may not ever come. 
 
The simplest way to ensure client invoices get paid immediately or within a set number of days that you choose is to use an automated system like AxisCare’s Bill & Collect. Consider the fact that some agencies in our industry are now requiring clients to enroll in autopay (automatically drafting payments a couple of days after sending invoices). These practices will set up your current and future private pay base for the best possible outcome. 
 

Consider billing Veterans Affairs. 
 

The VA has just begun paying out new rates for 2023, and they are higher than ever with some states being reimbursed up to $84/hr! I find agencies’ biggest hurdle to serving VA clients seems to be navigating a complex billing system. High reimbursement rates are only valuable if agencies arent receiving denials and partial payments every month. 

Work smarter, not harder when it comes to billing the VA. Outsource your VA billing to an all-inclusive service like AxisCare VA Billing, who will create and submit clean claims for you every time, ensuring full payments that get paid quickly. 

When you get credentialed by your local VA, you may also start receiving referrals from them as well, free marketing! With the highest reimbursement rates in the industry AND a steady stream of new clients, billing the VA is an easy decision when looking to diversify your payer sources.

 

What about Medicaid or Long-Term Care Insurance? 
 

In addition to the VA, consider additional third-party payers like Medicaid and long-term care insurance. While the reimbursement rates may not be as high as the VA, submitting claims can be simple through integrations with your scheduling software. If you are on a waiting list to get approved for Veterans Affairs, one of these alternative third-party payers would be a great start for diversification. 

The goal is to have your eggs in multiple baskets when it comes to your business’s financial stability. As you look ahead at the economic forecast, let it motivate you to get strategic. Remember that AxisCare has an entire department dedicated to just that: Client Success. 

Please use the resources below or email integrations@axiscare.com to set up a meeting about diversifying your payer sources today! 

Resources: 

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