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How can home care software make your agency 2.8x more profit?

The_Bottom_Line_3-18-16.png2015 was a tough year for home care agencies. Caregiver scarcity continues to prevent growth, the loss of the Companionship Exemption, and the Affordable Care Act's employer mandate to provide health insurance have made an assault on the profit margins for home care agencies. 

At ClearCare , we're focused on applying technology to your biggest business challenges -- and this means winning back your profit margin -- so you can spend more money on marketing, attracting and retaining caregivers, or pull the money out of the business for personal or charitable works.

Below are a few of the top innovations ClearCare has released over the last several months to make agencies 2.8x more profitable than their agency peers. 

1) The Family Room: While this product isn't brand new, we have created a suite of marketing collateral and even a video that agencies can use to market their use of the Family Room to win referrals. Imagine when you get 90-seconds with a social worker and they want to know what makes you different. Agencies can just press play to show how the Family Room works. We even have hundreds of agencies who have posted this video to their website (Fedelta Home Care is one example of an agency that posted the video on their website homepage) We spent the money creating this marketing tool so you just press play and win referrals. You can even add your agency logo and contact info to the video!

 

 
 
 
 
 
 
 
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2) Employment Screening with CareGuard Active Monitoring: We integrated caregiver background, drug testing, DMV checks but most notable is a new service called CareGuard. CareGuard Active Monitoring checks the Federal, FBI, SSN, and Sex Offender database multiple times per day so your agency can claim "Every other agency in my market runs a one-time annual screen, but we actively check the caregiver's background to make sure their records stay clean to add a little more peace of mind to the client.' We also created a marketing video for agencies to use to market this differentiator. Supreme Companions is an agency that has posted this to their website for all to see.

 

 
 
 
 
 
 
 
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 3) Work Opportunity Tax Credits: Most agencies are unaware of this Federal program that gives the home care agency business a tax credit on ~20% of their caregiver hires. The average tax credit is $2,600 -- so if you hired 50 caregivers last year your agency could shave $26,000 of your tax bill. Agencies using this lower their effective tax rate from 30% to 13%. We've made the process paperless and the submissions to your state are done automatically. And we can't shout this loud enough -- agencies have until June 29th 2016 to check the eligibility of past caregivers they hired in 2015 to see if they qualified at the time of hiring. So, if you hired 100 caregivers in 2015 you could be eligible for a $52,000 tax credit! This is a non-refundable credit but the credit can carry over for 20 years.

 
 
 
 
 
 
 

4) The Caregiver Marketplace: The #1 barrier to growth for home care agencies is the supply of caregivers. ClearCare has a database of tens of thousands of caregivers that are available. An agency can search by 30+ criteria and promote the name to an applicant within ClearCare. While there is no single source of caregivers, the Caregiver Marketplace enables agencies to reduce the number of times they turn down a case for not having an available caregiver. 

 
 
 
 
 
 
 
 

5) WorkSafe Central with ClearCare Insurance: WorkSafe Central is a built-in caregiver safety program that was designed to keep caregivers safe and injury free.  We then built our own insurance company inside of ClearCare and partnered with insurance underwriters that realize the benefit -- the result is agencies are savings thousands on workers' comp with pre-negotiated credits that are only available by using ClearCare. Tom Dolan saved $100k and 123 Home Care saved $200k are a couple examples

 
 
 
 
 
 
 
 
6) Office Efficiency: In simple terms, manage more clients and caregivers with less staff. As a past agency operator who came from the finance industry, we call this 'operating leverage' -- or, fixed cost divided by total cost. This is a good indicator of how efficient your agency is at generating revenue with limited resources. ClearCare's scheduling system, 2-way messaging, smart telephony, integrated e-payments, and other features allow agencies to handle more clients per coordinator. This agency owner grew 65% without adding any additional office staff!
So, if you're an agency wondering where your margins have gone or think you should be spinning off more free cash flow, give us a shout today. 

Want 2.8x more profit?

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Derek Jones

Derek enjoys spending time with family running road races, has completed 6-half marathons, mountain biking, and anything to do with baseball or the outdoors.

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