Prepare for the Future of Home Health Now.
There is a chapter in Jim Collins book, “Good to Great” titled, “Confront the Brutal Facts (Yet Never Lose Faith).” It is very relevant to home care today, and I recommend this reading to any home care leader.
In this chapter, the author cites several companies who did, and did not, confront the brutal facts. One example in particular was A&P, who in the 1950s “was one of the largest retailing organizations in the world and one of the largest corporations in the United States, at one point ranking behind only General Motors in annual sales.” Kroger, in contrast, wasn’t as stellar, barely keeping pace with the market at only half the size of A&P.
In the 1960s the market started to change. Americans wanted nicer stores, bigger stores, more selection, fresh-baked bread, flowers, cold medicines, forty-five choices of cereal, ten types of milk, etc. Well, you can probably guess the rest of the story. A&P continued with their plan that had worked so well in the first half of the century, faltering in the second half, while Kroger confronted the change and completely transformed its system in response. By the late 1990s, “Kroger generated cumulative returns ten times the market and eighty times better than A&P.”
The current home care environment is not one in which we should stick our heads in the sand. It is prudent to fight change that might burden home care to a larger degree than our less efficient health care provider counterparts.
But we need to confront the brutal facts:
- Reimbursement is going down further.
- We must embrace new concepts of care (for efficiency).
- A culture of discipline is necessary (consistent results & scrutiny-proof).
- We must accelerate our use of technology (assists with #2 & #3).
This is an opportunity that we are committed to helping you navigate through.