Our Business Model

For the first time in many years, the Patient-Driven Payment Model (PDPM)  has made it clear that skilled nursing facilities, CCRC’s, and life-plan communities have a tremendous cost savings opportunity by transitioning therapy services to an in-house model.  After transitioning and managing in-house rehabilitation departments for one year under PDPM, the results are compelling.  In-house rehab departments that operate “as if they are outsourced” create substantial cost savings opportunities, while matching or improving quality of care outcomes.  With today’s therapists being more available in the market, coupled with contract therapy companies’ high gross margins tied to the new pricing models for PDPM, Managed Care, and Part B therapy delivery, in-house therapy teams may offer the best option for post-acute care providers to save cost, and even offset the unforeseen expenses tied to COVID19.

 

Today, post-acute providers have an opportunity to improve the quality and control of therapy services, establish lower cost pricing to managed care providers and other next-generation payors, improve therapist satisfaction, and potentially save hundreds of thousands of gross margin dollars each year by transitioning in-house with therapy services.  

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PDPM has created a wave of interest by post-acute senior care providers looking at a way to substantially lower the cost of delivering therapy services by transitioning in-house.  

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Our hospital system clients show substantial cost savings opportunities through our unique "outsourced management model."  In addition, our Rehab Management Consultants assist the hospitals with strategies and management oversight of new therapy revenue sources.

 

Our Rehab Consultants have extensive contract therapy management experience and will replace the oversight and therapy operations expertise of your current contract therapy company.

Keeping the gross margins of contract rehab companies in your own community makes it very attractive to consider going in-house with rehab services.

 

The advantages of in-house therapy include:

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1. PDPM has created greater access to therapists in the market; therefore, it is easier to recruit and hire therapists for in-house programs.

2. Keep the contract company gross margins from PDPM and Part B contract pricing within the facility

3. Cost savings can be up to 32-45%

4. Seamless start-up and quick transition time, typically 60 days or less.

5. New downstream revenue opportunities via an episodic care model.

6. Better control of the quality, cost, and outcomes from therapy.

7. Lowest possible therapy cost for managed care and next generation payor contracts (e.g. shared savings, pay for performance, capitation, value-based rates, etc.)

8. Improved facility financial performance due to lower therapy labor cost.

9. Eliminate the burden of managing the therapy department / services by using an outside management company to manage the therapy staff / program / services "as if outsourced".

10. Unique opportunity to be part of an interstate collective of in-house therapy providers.

11. The cost savings realized by transitioning inhouse allows providers to recoup some of the expense associated with COVID19 as well as lost revenue opportunity caused by limitations placed on new admissions.

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​If you would like to learn more about how we can be of service to your organization, please contact us to schedule a confidential call.

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10400 West Higgins Rd, Suite 300

Rosemont, Illinois 60018