Mirus Industry Analysis or MIA is our monthly video + blog series that brings to you all figures and statistics related to the industry. Tom Murphy, Product Manager of Mirus Metrics joins Rob Covino in this episode to discuss Revenue Management trends in Aged Care. Click here to download Mirus Australia’s answer to each of the 8 new Aged Care Quality Standards.
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[To watch the full video, click here.]
ADS & Occupancy
The Average Daily Subsidy was brought up to a new high across industry at $179.87; with the private operators are at an all time high at $188.79 and not-for-profits at $176.05. Whereas Occupancy had a mixed movement across on all 3 segments, with the not-for-profits down at 90.57%, the private operators up at 88.78% and the industry average is at 90.01%.
Consumer acquisition strategies and having the right information at the right time through an efficient CRM tool is key to maintaining your Occupancy.
(To check if your CRM is working for you and to improve your Admissions Process & Occupancy please visit our CRM Self-diagnosis tool.)
Overall Medicare claiming activities in September 2019 were down. The industry average went down to 7.99% (a slump of 0.64%) with the private operators at a claiming activity of 9.08% (a decrease of 0.66%). They are leading when compared to the not-for-profits who are currently at 7.60% (A decrease of 0.62%).
(If you are looking for consistency between clinical documentation and supportive evidence for ACFI claiming, please visit Mirus CASE from our ACFI team, to quickly product high quality assessments, care plans and funding claims.)
MIA September 2019 infographic
The voluntary claiming activity or proactive claiming was down across all 3 cohorts, the industry average being 3.02%. The private operators are at 3.42% (decrease by 0.15%) and the not-for-profits are at 2.87% (decreased by 0.16%). This is a good measure of productivity and an indicator that can drive the ADS upwards.
The overall percentage of addressable ACFI Claims (older than 12 months not HHH indicating they are eligible for voluntary claiming), was down in all 3 segments, with the industry average going down to 34.78% (-1.6%). The not-for-profits went down to 37.25% while the private operators went down to 28.23%. The private operators as can be seen have a faster and more aggressive process around this.
Variance: New Vs Departed ACFI
When we look at the average ACFI of new residents compared to departed, we calculate the variance of the ADS between these two segments. With the declining occupancy numbers, we are noticing a widening of the variance, the industry average variance now at $27.47 and no change from the previous month. The private operators are leading at $23.44 and the not-for-profits are at $29.08.
For a benchmark level, the Mirus ACFI experts suggest a variance of $20 per day to be maintained as a good performance indicator for your facility. If you’d like to read more on ACFI optimisation, click here.
Complex Health Care Domain
Within the complex health care domain, we’ve seen a steady increase in the 4B procedures, with the industry average at 49.12% which also correlates to some of the strategies used by the industry to push the ADS up. The private operators are at 51.75% of all claims having a 4B claim attached to it within the medicare data, whereas the not-for-profits are at 47.99%. The continence 5 claims also increased, with the industry average at 38.56%. The private operators are at 44.39% and the not-for-profits are at 36.06% here.
There were declining trends in both care and non-care hours during September 2019. Non-care hours were down by 6.12% (0.79 hours) and the care related hours decreased by 7.53% (2.27 hours). If we unpack the care related hours, the agency hours went up by 21.14% (0.05 hours), the AIN hours declined by 6.22% (1.58 hours) and the Allied Health hours slumped by 32.42% (0.02 hours). The RN hours declined by 9% or 0.56 hours and EN hours slumped by 23% or 0.01 hours per bed per day basis.
Tom Murphy joins Rob in this month’s MIA, to discuss Revenue Management. Connect with Tom on LinkedIn here.
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See you next month!