AAHomecare releases Financial Performance Survey
September 29, 2003
ALEXANDRIA, Va. - In 2002, the HME industry’s over all DSO averaged 83 days – down by 2% over the prior year. The percentage of receivables over 120 days remained high at 24%, according to AAHomecare’s 2003 Financial Performance Survey Report released last week.
This year’s survey of financial and management practices of homecare companies includes new sections on HIPAA, IT compliance, delivery and clinical personnel efficiencies. The report will be presented by Dr. William Cron on Oct. 10, 11:00 a.m. – 12 p.m., at the Medtrade 2003 Conference and Expo.
“This report is the leading industry benchmark for the financial and operational management of homecare providers,” said Kay Cox, AAHomecare President and CEO. “It provides an opportunity for our diverse membership to see how they measure up against industry averages with companies of similar size and market segment.”
Key findings in the survey this year include:
HIPAA IT compliance: As of May 2003, only 43% of firms indicated that they were in compliance for the October deadline. Around 30% of responding firms hired consultants to help them meet HIPAA's IT regulations. On average, companies spent $5,700 on IT compliance, but 25% of respondents spent more than $17,000.
Hospital ownership: Hospital ownership of firms was 28% in 2002. In past surveys, the proportion of hospital ownership has ranged anywhere from 25% to 35%, putting this year's results at the lower end of the range.
Acquisition revenue impact: The 8% of participating companies that reported making an acquisition experienced an overall growth rate of 22% (up from 16% in 2001). However, their average growth rate for continuing business was 9%, closer to the industry average.”