Healthcare

Task-Based Home Care Billing Overcomes Staffing, Pricing Hurdles

Traditional home care, often involving minimum service hours, presents distinct challenges for both providers and clients. A new formula is easing pain points such as affordability and labor costs by billing for specific tasks completed, rather than the amount of time spent in the home.

Honolulu, Hawaii-based Vivia Cares launched a task-based billing model to improve affordability for clients and improve stability and working conditions for caregivers. The model has driven a surge in service demand, according to the company. 

“We tell our customers when they call us, we don’t sell time,” Dew-Anne Langcaon, CEO of Vivia Cares, told Home Health Care News. “We sell tasks and outcomes.”

Vivia Cares was founded in 2020 through the merger of a traditional home care agency and a technology company to address a severe shortage of caregivers driven by Hawaii’s aging population and shrinking population.

“We had been a traditional hourly home care agency at the time for 15 years, and we said, this is just not working,” Langcaon said. “Minimum wages were going up, but our wages were going up even higher because we were competing for the workforce with retail, restaurants. Hotels, especially, were paying much, much more just to get the staffing. So our rates had to go up as well. It just got to the point where I felt it was reaching unaffordability for the average person.”

Inside task-based billing

Vivia’s model involves a call center, in which workers determine families’ needs and describe up front the often high costs of care. These workers help families determine which tasks can be done by family members or friends and which must be done by a licensed professional.

Arrangements are not time-based; instead, caregivers visit eight to 10 clients a day and stay until the prearranged task is completed. If a task involves giving a client with dementia a shower, for example, the caregiver will help the client complete it, whether it takes 20 minutes or an issue delays completion to an hour.

In most cases, the shower takes just 20 minutes, but the client does not pay extra for additional time.

Vivia created its task-based billing model, in part, by determining what makes a good job for a caregiver. In discussions with the company’s best caregivers, they learned that caregivers desire stability of hours, additional pay – though they said it was not a motivating factor – and a need for transportation.

In response, Vivia decided to give caregivers guaranteed 40-hour workweeks, a 30% raise and a company car.

Company leaders then met with customers and asked what they liked and disliked about home care. Complaints included minimum hours and caregiver irregularities. The company has also developed a proprietary pricing model based on customer feedback.

After launching a task-based model, demand for services “skyrocketed,” Langcaon said.

While the new model offers substantial benefits for caregivers and clients, it requires a different caregiver demographic. Some of the company’s top traditional caregivers declined job offers to participate in the new model.

“The pace is very different,” Langcaon said. “Sitting with one client for the whole day is very different than going to eight to 10 clients during the day. We ended up having to develop a training program and recruiting, I would guess, a younger demographic that enjoyed the pace and didn’t mind the driving.”

Clients’ expectations also must be managed, Langcaon said.

“Everyone knows they’re basically sharing a caregiver in a neighborhood,” she said. “We have had incidents where the caregiver has arrived and the client does not look well, and they call the nurse. Nurse Facetimes and says, ‘You have got to call 911.’ So then that’s going to take a little longer, because our protocol is to stay until they’re in the ambulance [arrives]. So if that’s the case, then the office is calling all of the next [clients to say] ‘Oh, there’s an emergency in the neighborhood. We’re going to be a little late. Would you like to reschedule?’ There’s just constant communication, and that’s a real difference.”

The future of home care

Other models have also disrupted some of the traditional elements of home care. Short-hour care models, for instance, allow clients to receive care for as little as 10 to 15 minutes, sometimes multiple times a day. Providers utilizing this model say it better meets clients’ needs and allows caregivers to spend more time with their clients. 

While alternative models may be on the rise, traditional home care models are not going away, according to Langcaon. Vivia Care’s offerings are split between about 50% traditional home care and 50% task-based home care.

“There will always be those that need for 24/7 supervision, that need that constant care,” she said. “But certainly what has gone away is the in-between shifts, the four, six, eight-hour shifts. Because people have … figured out how we can do that with multiple visits a day. So if someone, for example, needs help with meals, breakfast, lunch, dinner, right? It becomes three 20-minute visits rather than an eight-hour shift.”

The task-based business allows caregivers to see far more clients, Langcaon said, with 30 caregivers serving 350 patients on the task-based side of the business, and 74 caregivers serving 350 patients.

Task-based billing is uncommon in the home care industry, Langcaon said, but Vivia Cares is experimenting with expanding the model in the state of Washington. The desirability for these services is just as high as in Hawaii, she said, but requires a different approach due to a less dense population. The company is currently developing a virtual training program that will be suitable for the conditions of Washington and other states, and plans to eventually share the program with other home care providers.

“It’s not an easy model to replicate, but our goal is to reduce it down to the technology, the scripts and the training, and put it all together in a package so that in a couple of years, everybody can do it,” Langcaon said.

The post Task-Based Home Care Billing Overcomes Staffing, Pricing Hurdles appeared first on Home Health Care News.

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