As most of you know, Fazzi has just completed our fourth bi-annual National State of the Home Care and Hospice Industry Study. It is the largest and most comprehensive study in our field and while we are just beginning the tedious but critical job of in-depth analysis, it is clear that major changes are happening.
Consider outsource coding. It is clearly following the path of other critical tools used by home health and hospice agencies: IT systems, point of care systems, telehealth and OASIS scrubbing. Agencies started slow and then accelerated their adoption of these critical systems. Same for outsourced coding. Five years ago, few agencies outsourced their coding. Two years ago, in Fazzi’s 2014 State of the Industry Study, only 6.3% of agencies reported that they used outsourced coding services.
In our most recent study, the 2016 State of the Industry Study, we discovered that there is a radical shift in the use of outsource coding especially by medium to large agencies. The percentage of agencies larger than $500,000 who are outsourcing has more than tripled to 29.4%. The study also found that of those respondents who are not currently using outsource coding services, 11.2% of them plan to explore using these services in the next twelve months.
The home care and hospice field is, without a doubt, following the lead of the hospital and health system sector. According to Black Book Market Research, one of the hospital and health industry’s leading research publications, “outsourced coding, transcription, health records management and clinical documentation managed services are on a meteoric rise. 69% of hospitals now outsource CDI, audit, review and programming, up from 25% in 2014.” Of those using outsourcing, “84% expressed satisfaction and experience outcomes that exceed expectations.”
Even though Fazzi is the largest outsourced home care and hospice coding company in the US, we were surprised by the growth and speed of change in our industry. It is yet another example of how rapidly we are changing as an industry. New tools. New challenges. New opportunities. It is clearly an exciting yet challenging time in the home care and hospice sector.
If you would like more information on Fazzi’s outsourced coding services simply click here to or contact Barb Cullen at 413-584-5300.
Bob Fazzi, Managing Partner