Home Health & Hospice Week

Increased gas prices are a headache for nearly everyone, but they are especially burdensome for home health and hospice agencies and their visiting staff. Right when agencies are getting slammed by COVID-19 and the labor shortage, gas prices are exacerbating difficulties finding and retaining workers.

“As the conflict between Russia and Ukraine continues, crude prices soar, leading to higher pump prices in the U.S.,” notes AAA. On March 10, the national average for a regular gallon of gas was the highest ever in the U.S. at $4.32.

That figure is up 59 cents per gallon from a week ago, 84 cents from a month ago, and more than a dollar-and-a-half from a year ago, according to the association. And it exceeds previous gas prices that set records in 2008.

On Jan. 1, the Internal Revenue Service raised its busi-ness mileage reimbursement rate to 58.5 cents per mile, up 2.5 cents from the rate for 2021. But even for agencies that reimburse staff that amount, the spiking gas prices are making that payment inadequate.

Consider these tactics to combat the issue:

• Geographic scheduling. If you don’t do so already, now’s the time to schedule your employees’ visits very carefully to minimize travel.
• Mileage rate. Increase your mileage reimbursement rate to the IRS maximum if you haven’t already.
• Gas gift cards. If you don’t want to take the leap to permanently increasing your travel reimbursement rate, you can hand out gas gift cards to employees.
• Add-ons. Rather than change the mileage rate, some agencies are offering a per-visit bonus until gas prices come down.
• Group discounts. Check into securing a fleet discount rate in your community.
• Providing cars. Soaring gas prices will seem even worse for employees driving gas guzzlers. Consider furnishing fuel-efficient cars for your employees to use for work — perhaps for just the most distant patients.

Caveat: If you decide to furnish gas cards or issue per-visit bonuses, be sure to comply with any wage- and tax-related requirements. Remember, payment for gas over the IRS limit is considered compensation.

Train Employees On Lowering Fuel Costs

You can also empower employees to trim their fuel costs by educating them on smart tactics such as:

• using public transportation;
• finding the lowest prices in the area with tools such as gasbuddy.com, the AAA app, etc.;
• joining gas station and grocery store loyalty programs with fuel discounts;
• using cash-back credit cards to purchase gas;
• lowering their speed while driving
• filling up their tank on typically lower-cost days (Monday and Tuesday);
• shutting off their engine while idling;
• removing as many items as possible from their vehicle to lighten the load;
• reducing acceleration and break usage; and
• ensuring correct tire inflation levels.

Resource: See more tips at https://www.gasbuddy.com/go/ultimate-guide-to-saving-money-on-gas.