HHT #161 - Time to Grow Your Agency

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It's Time To Grow Your Agency

Times of Economic Uncertainty are the Times to Grow Your Business

May 27, 2009

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In this issue...

-- Fly Fishing and Home Health Business Building

-- Home Health and Hospice Sales & Marketing Strategies for the Current Economic Climate

-- How Much Time Should Sales Reps Spend with Current Customers vs. Prospects?

-- Home Health and Hospice Business Builders Workshop

-- Academy for Private Duty Home Care in Orlando

-- Private Duty Business Builders Strategy Retreat

-- About the Author

-- Permission to Reproduce

Welcome,

Welcome to this issue of Home Health Care Today, the leading electronic newsletter for home health care and hospice executives who want to grow their business and get ready for the future. Every other Wednesday, we bring you strategies and insights that will help you take your agency to new heights.

For ideas to grow your Private Duty Home Care business, subscribe to Private Duty Today, the bi-weekly newsletter for non-medical home care CEOs. Your complimentary subscription is available at www.privatedutytoday.com.


Fly Fishing and Home Health Business Building

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Yesterday, I was in the Pocono Mountains of eastern Pennsylvania fly fishing with my friend, Oliver Harlow. Oliver is Director of Business Development for The Senior's Choice. He lives in Manhattan, NY and loves to fish.

We met early in the morning along the famous Bushkill Creek and mapped out our strategy. We talked with several local fisherman who knew the area well and were kind enough to give us some great tips. Then we headed down the river.

It was the most amazing day of trout fishing I've had in many years. We caught and safely released dozens of twelve to fourteen inch Brown Trout. There was an awesome hatch of blue winged olives on the water, and the trout were feasting on these little grey insects. We matched the hatch with a small dry fly, had trout rising to our lure on almost every cast for part of the day.

Later, the fly hatch ended, and we had to work much harder and smarter to catch fish the rest of the day.

Back at the car after eight hours of solid fishing, we munched on the remains of our lunch and talked about the day. Oliver asked me if I was going to write about this trip in Home Health Care Today. Of Course! Whenever we find lessons that can help our readers, we'll write about them.

There are several lessons I took away from my day on the trout stream that are relevant to growing your home health and hospice business:

  • Fish where the big fish live. You have to know who and where your referral sources are.
  • Use the right fly. What is important to your referral sources in selecting a home health or hospice agency?
  • Know where to cast your fly. Understanding the environment of your referral sources is critical.
  • When the fishing slows down, you need to fish harder and smarter.

Right before lunch yesterday, when the Mayfly hatch was most abundant, the fishing was easy. Fish were rising to our flies on nearly every cast. It just took some skill and practice to hook them and bring them safely to the net. Later in the day, the hatch ended, and the fish seemed to quit biting. We switched flies several times, and tried different parts of the stream. We still managed to catch fish through out the day, but it was slower and more focused.

The same thing is true when the home health and hospice business slows down. Right now, I'm hearing many of our clients around the country tell us they are feeling the effects of the overall economy. Hospitals have lower census, which is usually a preview of slower referrals to home health. Patients are delaying elective procedures and even putting off treatment of chronic conditions.

If you are seeing some signs of slower home health referrals, now is the time to shift your marketing methods and be more focused. It is definitely NOT the time to cut back on sales and marketing.

There is a ton of research out there showing that companies that implement a focused sales and marketing effort during slower business times come out ahead in the long run. When you double your efforts during slower times, you will gain market share and be much stronger when the slow period ends.


Home Health and Hospice Sales & Marketing Strategies for the Current Economic Climate

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Now is the time to refocus your business building people and processes to take advantage of the current economic climate.

First, let me say this. The economy of home health and hospice is still very good. Despite some of the challenges, most agencies I talk with are still experiencing steady a flow of new referrals that turn into admissions.

So what are the strategies you can use to grow referrals now? Here are some specific steps you can take to gain competitive advantage in this marketplace:

  • Analyze current referral patterns to identify your best referral sources
  • Classify your current referrals sources in to C-1, C-2, and C-3
  • Identify your high potential prospects and classify them as P-1
  • Invest in training your sales representatives to focus their selling efforts
  • Support your sales team with a focused marketing strategy
  • Review your intake and referral process to make sure you are the easiest agency to work with
  • Ask for feedback from key referral sources to help you improve your sales, marketing, and intake processes

This is an exciting time to be working in home health and hospice, and we want to take advantage of every opportunity to grow our agencies. A growing agency is a strong healthy agency, and as the CEO or a senior executive, you want to continue to strengthen your agency and leave a lasting legacy.


How Much Time Should Sales Reps Spend with Current Customers vs. Prospects?

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That's a question I'm often asked by sales managers and marketing directors in home health and hospice.

Here's the answer. It depends on your current flow of referrals that turn into admissions. If your agency has been in business for a while, has a strong position in the marketplace, and you have a regular flow of admissions from a focused group of referral sources, then you'll want to spend more time - perhaps 60 - 70%, nurturing your relationships with your C-1s, and moving C-2s and C-3s up to C-1s.

If your agency is small, you are relatively new, or you have low market share, then you may spend more time calling on potential referral sources - your P-1 Prospects. We see new agencies with new sales reps spending 60 to 70% of their time calling on high potential prospects.

Making that decision is critical, and should be based on careful analysis, and a clear understanding of your agency's real position in the marketplace.

Another factor to take into account is the behavioral style and sales experience of your sales representatives. Some reps are great at prospecting, and others are great at nurturing existing customers. Knowing the ability and style of your sales reps is really important.


Home Health and Hospice Business Builders Workshop

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Mark your calendar for September 16, 17, and 18 to come to Louisville, KY for the 2009 Home Health and Hospice Business Builders Workshop. This highly interactive workshop will be designed to help you develop the sales, marketing, and public relations skills you need to grow your agency and get ready for the future.

As we analyzed the attendance from our April's Certified Home Care Sales Professional Workshop and the feedback we received from participants, we saw an opportunity to take home health and hospice sales and marketing to a new level.

The Home Health and Hospice Business Builders Workshop is that new opportunity! So if you were planning on attending our CHCSP conference in September 2009, you want to attend the Home Health and Hospice Business Builder Workshop in September 2009.

And for you folks who have participated in one of our previous CHCSP conferences and were waiting on the next level of programming, this workshop is for you too!

There will be more information on our web site shortly, but I wanted to get the dates on your calendar right away. Remember, for previous attendees and new attendees, - Home Health and Hospice Business Builders Workshop - September 16, 17, and 18, Louisville, Kentucky.


Academy for Private Duty Home Care in Orlando

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Join me in Orlando, Florida on Wednesday, June 24, 2009 for the Academy for Private Duty Home Care, sponsored by the Home Care Association of Florida. The Academy will be conducted as an all-day track within the association's annual conference.

Get more information and insights into the three pillars of private duty home care; Promotion, People, and Profits. Get the latest strategies and insights to help you grow your business. Click on the link below to download the conference brochure. Then visit the HCAF web site to register.

Download HCAF conference brochure


Private Duty Business Builders Strategy Retreat

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There's still time to register for next week's Private Duty Business Builders Strategy Retreat in Columbia, Maryland, sponsored by the Maryland National Capitol Home Care Association.

If you and your private duty director would like to come together with other successful private duty companies for a one-day executive strategy retreat, here's an exciting opportunity.

Join me in Columbia, Maryland - right near BWI airport - for a one-day focused strategy session designed to help you develop a business growth plan for your company. We'll look at the 27 elements of a successful private duty business, and give you an opportunity to focus on those elements that are most important to you.

We'll share with you the best practices and proven techniques to grow your private pay business. We'll show you how to recruit and select the caregivers you need to take on more clients and we will give you specific tips to increase the profitability of your business.

Join the folks from the Maryland National Capitol Home Care Association on June 3, 2009 for the Private Duty Business Builders Strategy Retreat. See you there!

Register today!


About the Author

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Stephen Tweed, CSP, is Chairman and CEO of Leading Home Care ... a Tweed Jeffries company. For over 25 years he has been a recognized leader in strategy and leadership development for home health care & hospice companies and associations. He is the author or co-author of seven books, five of which were written specifically for the home care industry. He has served on the boards of directors of three not-for-profit home care agencies, and has served as interim President & CEO of a $25 million home care company.

Stephen is a past-President of the National Speakers Association, a 3500 member international society of experts who speak professionally. He is also the father of a 38 year-old son who is physically disabled and uses the services of home care on a daily basis.

Meet the entire Leading Home Care Team


Permission to Reproduce

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Permission is granted to healthcare publications, associations and companies to reproduce this article in your publication, or to distribute copies to your leaders, on the condition that you reproduce the credits and contact information as follows: "Reprinted with permission from Home Health Care Today. Copyright 2009 Stephen C. Tweed. To receive a FREE subscription to this newsletter, log on to www.leadinghomecare.com."



Contact Leading Home Care

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phone: 1-866-209-5101

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