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Redesigning for success: managing the prospective payment system.

¹Ayer Associates, Annandale, Va., USA.

Home Care Provider

|June 2, 2000

Summary

Home health agencies face changes from managed care and the Medicare prospective payment system. This article explores process reengineering to help agencies adapt and improve efficiency.

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Area of Science:

Healthcare Administration
Health Services Research

Background:

Managed care and the new Medicare prospective payment system are significantly impacting home health agency operations.
Agencies are actively downsizing, streamlining, and seeking innovative strategies for resource optimization.

Purpose of the Study:

To outline the concepts of process reengineering for adaptation by home health agencies.
To provide practical measures for agencies to "recreate" themselves in response to industry changes.

Main Methods:

The article outlines general concepts of process reengineering.
It demonstrates practical measures through the experiences of a large home health agency.

Main Results:

Process reengineering offers a framework for home health agencies to adapt to new payment systems.
The case study illustrates successful implementation of reengineering principles.

Conclusions:

Home health agencies can leverage process reengineering to navigate the evolving healthcare landscape.
Adapting reengineering concepts is crucial for agency sustainability and efficiency.

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