Home-based care companies are growing, and financial health is top of mind looking ahead to 2023. That’s according to a new survey from Home Health Care News and home-based care software company AlayaCare.
“Home care saw tremendous growth during the pandemic — however, the industry is not immune to the effects of today’s recessionary directions,” Brady Murphy, chief revenue officer at AlayaCare, said in a statement. “Results from the HHCN, AlayaCare survey indicate that respondents remain optimistic about 2023. They look for ways to improve margins through back-office efficiencies. They grow their top line by demonstrating care quality with data. The war on talent remains a strategic priority. Providers that leverage software as a major component of their success will thrive.”
There are a number of key takeaways to be gleaned from the survey data.
One major takeaway is that an increase in referrals is one of the main drivers of financial growth for almost half — 44%— of the respondents.
Additionally, 40% of respondents say that their capacity to accept referrals is better now than in January 2022. In fact, only 17% of respondents said it’s worse now than at the start of the year.
Another takeaway from the survey is that 38% home-based care companies consider hospitals their most important referral source. Skilled nursing facilities were also identified as the top referral source by 20% of respondents. Word of mouth rounded out the top three with 18% of respondents naming this as the most important referral source.
The survey also found that over 75% of respondents use a number of separate technologies to deal with operational processes, while 24% of respondents use just one platform for their organizations needs.
When asked if they believe their company is in “growth mode”, 65% of respondents confirmed their organization is growing. Only 26% of respondents said no, but also considered their companies stable.
On the flip side, 9% of respondents said their company is shrinking.
Respondents also identified the ways the economic downturn is impacting their outlook for next year.
Overall, 34% of respondents said slowing down hiring plans, 31% named service line expansion, 31% said tech investment, 22% said training and 16% said slowing growth-related investments in real estate.
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