Frequently Asked Questions

How would an in-house therapy program in a skilled nursing facility contribute to cost savings?

In an in-house model, there’s no sharing of Medicare revenue, HMO, or Part B revenue with the contract therapy provider. The facility avoids bearing the overhead expenses, and the profit margins of the contract therapy company.  In addition, most therapy agreements are structured around the number of days a patient remains on the therapy caseload, irrespective of actual therapy sessions. This includes admission days, weekends, holidays, or if the patient is off-site for appointments or declines therapy. With an in-house model, as costs are related to direct labor, any day where therapy isn’t provided for any reason, the facility saves on the labor cost.

How would I know if my facility would financially benefit from an in-house therapy conversion?

The decision-making process involves evaluating various factors, including a very methodical financial analysis of your current therapy utilization, your payer mix, and the alignment with your facility’s strategic objectives. Typically, facilities can realize savings of up to 25% on their current annual therapy expenditure. This translates to significant cost reductions, contingent upon the size of your facility and skilled census.

In what ways does having an in-house therapy program enhance the overall quality of therapy services provided in a skilled nursing facility?

A thoughtfully managed in-house therapy program prioritizes the care and well-being of residents and patients above all else. Without the pressure to meet profit margins, commonly seen in the contract therapy providers, the in-house therapy team can focus solely on providing the most beneficial care tailored to each individual’s needs, rather than adhering strictly to company-directed time constraints. Additionally, this approach fosters meaningful engagement from the therapy department during family care conferences and other care meetings, ensuring a collaborative and comprehensive approach to patient care.

How does the in-house therapy program facilitate better collaboration between therapy professionals and other healthcare staff in the skilled nursing facility?

In many facilities, when the therapy team is provided by an external company, there tends to be a noticeable divide between the therapy team and the rest of the facility staff, leading to a perception of them as outsiders. This dynamic can become more strained whenever the facility undergoes a change in its contract therapy provider. Conversely, having an in-house therapy team has consistently fostered a unified “one team, one goal” mindset and approach to delivering comprehensive services.

What technology approaches are integrated into the in-house therapy program to optimize efficiency and effectiveness?

The technology utilized for documentation, productivity management, maintaining high efficiency and patient outcomes within the therapy department is not limited to large contract companies or any specific provider. We employ the same advanced technology as the major contract companies, and help the facilities to integrate them with nursing EMRs such as PCC and MatrixCare, ensuring streamlined operations and optimal patient care. 

Why do I need a management company for an in-house model?

In facilities operating an in-house therapy model without comprehensive management and consultanting support, there’s often a risk due to staff not being fully equipped with the evolving knowledge of Medicare regulations, audit responses, and optimal clinical service delivery. Engaging with a management company can mitigate these risks by offering a suite of expertise, extending beyond therapy regulations and skills. This includes access to consultants well-versed in various aspects affecting patient outcomes and reimbursement, ensuring a robust and compliant operational framework.

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