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Under PDGM: Add Up the Benefits of Contract Therapy

A common assumption among home health providers is that outsourcing rehab services is costly.  But a close look at the benefits of contracted therapy demonstrates a very different perspective. 

Hear Us Out…
For HHAs that manage their own therapy team, it’s important to also factor in costs associated with key success drivers such as PDGM success, strategy, management, education, documentation training, recruiting, and staffing.

These elements are often baked into contracted therapy rates, and the specific reason why outsourced rates (at first glance) are higher. 

This is the case with HealthPRO Heritage at Home: a reputable, data-driven, outcomes-based company that provides all these valuable things at an upfront, well-defined, predictable cost to 1,000+ clients nationwide. Yes, contracted rates are typically higher. Now more than ever given the clear impacts of PDGM and COVID-19, it’s important to consider the benefit of contracting for a variable cost vs. absorbing the fixed cost associated with in-house therapists and their associated overhead.

Let’s Do the Math (Numbers Don't Lie)
To illustrate, consider an agency with an in-house therapy team with 50 patients receiving 2 therapy visits per week: Cost for therapy managers, schedulers, onboarding, back office, payroll, and education may amount to $11.48 additional for overhead per visit. Compound this by adding benefit load plus mileage equal to $27.15 on top of the per visit rate paid ($67.50). As such, the average agency is operating at an all-in cost of $106.13 per visit.

In this example, assume 400 therapy visits per month, and the potential annual savings could add up to $72,624!


In-House Model

Contract Model

Per Visit Direct Cost



Benefit Load & Travel Expense


Mileage only at $6.00

Overhead for Scheduler, Recruiting & Training



Total Visit Cost



Costs Savings Per Visit



Annual Savings
[At Approx. 400 visits/month]



The Pressure is On

Under PDGM, where the conversion to 30 day payment periods and the regulatory changes with RAP processing have posed significant cash flow and revenue cycle concerns, contracted therapy may be an advantage. The fixed cost of contract therapy supports a streamlined budget process. Moreover, predictable costs enable HHAs to accurately track therapy cost for financial analysis and forecasting. The add-on services embedded in HealthPRO Heritage at Home’s partnership model alleviates the burden of recruiting, onboarding, training, and oversight of therapy, allowing leadership teams to focus instead on higher level, strategic business opportunities and growth objectives.

Learn More About HealthPRO Heritage at Home
As the home health industry continues to weather the storm of PDGM and COVID, savvy home health agencies are evaluating opportunities and mitigating risks. An important part of the analysis: consider the impact and ROI of investing in a partnership with HealthPRO Heritage at Home. Read on for details related to our team’s unique resources, tools and subject-matter-expertise designed to help HHAs succeed in 2021 & beyond!

PDGM Success + Expertise
HealthPRO Heritage at Home was among the first in the industry to take the lead in prepping clients and clinicians alike for PDGM. Our proactive approach: comprehensive education regarding clinical care pathways to support utilization management based on the clinical characteristics of patients. Our Care Pathways to Success drive clinical outcomes while ensuring best practices and operational success of our partners.

Recruiting + Hiring
HealthPRO Heritage at Home has a dedicated team of experienced recruiters with demonstrated expertise in sourcing home care candidates via progressive strategies. A multi-step onboarding process ensures qualified clinicians are hired, and all staff participates in mandatory, ongoing training to assure compliance with CMS standards and each client’s accrediting body.

Orientation + Ongoing Training
Orientation training covers home health regulations and clinical practice guidelines (CMS requirements). Ongoing training focuses on market and regulatory changes. HealthPRO Heritage at Home leverages abundant resources and expansive clinical expertise to model best practices for clinical application, utilization, and documentation.

Specifically, HealthPRO Heritage at Home understands the significance of accurate OASIS scoring;  as such, we continue to invest in unique resources and training for the majority of our clinicians/managers to assure OASIS competency and effective interdisciplinary collaboration. 

Scheduling + Documentation Compliance
Simply forward the referral, and we’ll take care of the rest! Our schedulers assure timely processing of new referrals, address patient concerns, and complete necessary authorizations. Our back office team assures delivery of services in conjunction with established plans of care, and that documentation is completed and submitted in a timely manner. Proprietary tools support effective interdisciplinary care coordination (For instance, as a patient nears the end of a certification period, your team receives a weekly update to support interdisciplinary collaboration regarding appropriateness of re-certification or discharge).

HealthPRO Heritage at Home's web-based therapy management software provides easy access for unlimited agency use (at no additional cost) and features useful scheduling and documentation functions. Real-time updates support quick turnaround time for accurate billing, and training ensures that every evaluation and treatment note are fully defensible. Quarterly, therapist-focused audits are completed to assure consistent quality documentation.

HealthPRO Heritage is best known for therapy management and operational expertise. Regional and national teams provide oversight of therapy professionals based on state-specific practice guidelines and require completion of annual competencies. Our Quality Assurance and Compliance (QAC) team and Clinical Strategies division provide teams with extensive resources to provide only quality care. This is reflected in above-board documentation practices as well as demonstrable outcomes and patient satisfaction.

ReDesigning Tomorrow Together - PDGM COVID

Tags: Contract Rehab, Home Health, PDGM, In-House Therapy