Home Health & Hospice Week

Industry Note:

Examine This Case Study For Cost-Cutting Tips

If you're looking to cut your spending in these trying financial times, you may want to take a page from one Milwaukee home health agency that's been there. Horizon Home Care & Hospice has cut $1.3 million from its annual budget this year, reports The (Milwaukee) Business Journal.

Horizon, which has annual home care revenue of $12 to $13 million, used a number of budget- cutting strategies, according to CEO Mary Haynor. The cuts were necessitated by cuts in Medicare reimbursement rates and a rate freeze for Medicaid, Haynor told the Journal.

How? Among other tactics, Horizon eliminate four manager positions through attrition; laid off one employee; offered part-time workers incen tives to work more hours; and "looked at" processes. The company did it by "holding nothing sacred," Haynor said.

What's ahead: Continued rate-cutting will cause smaller companies to close or consolidate, Haynor predicted.

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