PDT #123 -- Home Care Licensing andState Regulation

The Good, the Bad & the Ugly                                                                     July 30, 2008

 

Private Duty Today

Jason Tweed, editor of Private Duty Today 

Welcome to Private Duty Today, the bi-weekly electronic newsletter for Private Duty Home Care Leaders from Leading Home Care ...a Tweed Jeffries company. In this issue, we bring you ideas, information, and insights to help you grow your Private Duty Home Care business.

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I'm Jason Tweed, Director of Business Development for Leading Home Care, and Editor of Private Duty Today

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I spent the whole week so far talking with frustrated people in Illinois and Georgia, among other states. These states have recently created their regulations for home care licensing and both are extensive.  Furthermore, state regulators are, generally speaking, overworked and not very helpful.
 
In Illinois the new licensing takes effect in slightly over a month.  Many organizations who've been in business for years, even decades, are struggling to get their licenses at the last minute.  Leading Home Care is trying to help by offering products such as our
Policies and Procedures Manual, but besides words of encouragement, there is little we can do to speed up the process.

Here are the frustrations I'm hearing:

  • State regulators tell us our policies are too vague.
  • Home health providers are encouraging the state to eliminate private duty.
  • Home care agencies are trying to eliminate registries.
  • State agencies aren't very helpful.
  • Nobody asked us for guidance when creating the regulations.
  • The regulations are too detailed.

The list goes on.
 
Unfortunately, we as an industry are partially to blame.  We estimate that there are in excess of 15,000 home care agencies providing private duty home care nationwide.  Unfortunately, only a few hundred of them are members of the national associations representing private duty home care.  Even fewer companies attend one or more conferences and meetings.  Of those who attend these conferences, most of you are there to get marketing tips and recruiting advice, not to influence the direction of your industry.
 
It's time to start thinking BIG PICTURE.  As owners, executives, and administrators part of your job is to think outside your own company and your own community.

 

State Regulation:  The Good, the Bad and the Ugly 

Personally, I'm in favor of a certain amount of state regulation and licensing.  The fact is that there are companies in our industry who don't treat seniors and people with disabilities with respect, and have been known to take advantage of us and put us at risk.  One of the jobs of government is to protect those who can't protect themselves.
 
The Good:  Requiring agencies to be licensed eliminates the people pretending to run a home care agency. 
 
There are some people who, frustrated with their job, decide it's a good idea to take care of older people and get paid.  They post flyers in the supermarket and classifieds in the Pennysaver, and actually get one or two clients.  These individuals, while some of them well-meaning, often make mistakes that lead to problems with families and clients.  Take a quick poll of your client base, and you'll find that a huge number of them had this type of first experience with home care.
 
Licensing establishes the minimum criteria to operate a home care company within a state.  By raising the bar slightly we improve the perception of our industry.  This is beneficial to good quality companies interested in providing good service.
 
Another benefit is that licensing is the most basic level of organization of an industry.  As an industry, we could use this organization.  If home care associations had a list of licensed agencies, it would be easier for them to reach out.  Companies like my own would also be able to improve their marketing.  While this may seem selfish of us, the reality is that running a business in a vacuum is also dangerous.  Home care owners need to be able to connect with other owners, and firms like ours need to be able to teach best practices to more companies.
 
The Bad:  In 1992 soon-to-be President Clinton and future Senator Clinton were campaigning together.  One of their principal campaign messages was the reformation of healthcare in America.  We had a broken healthcare system that was overpriced, over profitable, under regulated and less than scrupulous.  Medicare fraud was rampant, including the home healthcare industry.
 
While massive and sweeping regulation never actually occurred under the Clinton administration, healthcare was reformed.  You see, by the time that President and Mrs. Clinton were in office and the ball could get rolling in the House and Senate, the healthcare industry recognized impending doom and began to self regulate.  They started listening to their consumers more.  While some would argue that this reformation needs to happen again today, the reality is that this was a great example of self-determination of an industry.
 
We don't have self-determination in private duty home care.  While some organizations have created voice, by and large, they don't represent the industry in sheer numbers.
 
I'm proud of the fact that over 8000 people have chosen to receive our free newsletter, but I'm saddened to think that Private Duty Today is probably the most unifying presence in this industry.  Heck, some of you even delete me once in awhile.
 
I hear that you want more influence in state and national regulation, but what are we doing about it?  Of the 8000 people who subscribe 90% of you don't belong to your state home care association, and 95% of you probably haven't attended a national industry conference in the past year.  Finally, nearly 100% of you have never voiced your opinions directly to state or national elected officials.
 
If we aren't organized we can't self regulate.  If we are unable to self regulate, the states will do it for us.
 
The Ugly:  Lobbying, outside influences, excessive regulation... and it's going to get worse.
 
When I started this newsletter five years ago a handful of states required licensing of non-medical home care.  Most of them simply required it as a way of managing Medicaid dollars.
 
Today licensing is required in over 60% of the states, and at the rate things are going there will be licensing in every state within the next five years.
 
Licensing and regulation is the ugly side, and we've seen many instances of it lately.  Here are a few bullet points to emphasize the ugliness.

  • This is EASY legislation to pass. State Representatives are happy to pass a bill that protects our seniors. Loving senior citizens is definitely a bipartisan effort!
  • Because it's easy, the legislation doesn't always have clear direction. Generally it says "license home care" then they assign $2 million to rent a small office and hire a director and a couple of assistants.
  • This new director creates a series of regulations and requirements for licensing. These new policies are often excessive. The state isn't interested in making it easier to run your business, and they are looking for maximum protection for their dollar.
  • During the creation of these policies the director and his/her staff frequently look for advice. They call other states to find out about their regulations. They hold small public meetings. And finally, they reach out to the industry organizing bodies.

In some states we've seen regulation for the sake of regulation. In other states we have seen influence of lobbyists with vested interest in preventing new businesses from getting started.

We haven't seen recognition by states that non-medical home care is something different then home health care. By and large the regulations tend to follow a medical model rather than an ADL model. This is sad because it doesn't hold the best interest of good private duty companies, nor their clientele
.

 

 

Time to Think -- and Act -- Big Picture 

 

Self-determination and self-regulation both begin with SELF.
 
It's actually a relatively simple process.  First, join one or more of the excellent national associations that represent private duty home care.  If your company is a home health care agency that also offers private duty, make sure to join the private duty specific associations as well.
 
Join your state home care association.
 
There is a catch 22 with state home care associations.  Private duty company owners tell me that they joined, but eventually left because there wasn't enough programming that was private duty specific.
 
State home health associations tell me that the reason they don't offer more programming and education for private duty is that the owners don't join, and if they do, they quit.
 
Company Owners:  Join today and stick with it.  Become an active participant.  Industry associations in any industry are a reflection of the participation of their members.  If you clearly demonstrate that you want different programming, your association will change.
 
Association Directors:  It's time to dedicate more resources to private duty.  Many of you have done an excellent job representing the home health care industry.  The non-medical home care industry needs you now.  Step up to the plate and invest the resources, the membership will come to you.
 
Special message for certified home health care agencies:  This is a dangerous message for me personally to send, but I'm going to risk it.  We provide many services through our parent company, Leading Home Care, to certified agencies, and the largest portion of our revenue (and my personal salary) depends on you.  But here goes...
 
I want certified home health care companies to be more open to "competitors" in the private duty sector.  Some of the regulation that's occurring is being influenced by you, and the organizations that represent you.  It's leading to excessive regulation that benefits certified agencies.
 
Non-medical home care is just that.  This morning I got out of bed, dressed and showered, ate breakfast, and came into the office.  I did all of that without the help of a medical professional, although I had a well-trained and dedicated caregiver to assist me.
 
Companies that provide a non-medical model of home care are incredibly valuable to their clientele. Frequently we're asked to advise home health agencies how to improve their private duty program and inevitably we find the companies who are struggling are focused too much on the medical model.  This model doesn't work in private duty because it isn't efficient, and furthermore your customers don't like it.
 
Private duty companies, home health agencies, and state and national associations need to work together to promote the big picture in home care.  Creating a strong industry with clear direction and a self-determined code of ethics will encourage state governments to provide support rather than regulation.

 

 

Two Conferences for Private Duty Owners this Fall

 

2008 Home Care Sales Professional

Sept. 17-19 -- The Westin Riverwalk, San Antonio, Texas Don't miss this exciting opportunity to participate in one-on-one coaching to hone your selling skills.

  

The National Private Duty Insider Business Builders Conference & Expo

Nov. 17-19 -- Omni Resort Orlando at ChampionsGate, Orlando, Florida

Discover how to grow referral sources and tap into the resources you need to ride the explosive growth of the private duty sector to success. 

 

 

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