10/21/2018 Another Disruption at a Digital Disruptor - Leading Home Care

Another Disruption at a Digital Disruptor

By Stephen Tweed

As longtime readers know, we’ve been following the path of the “Digital Disruptors” in home care.
These are the companies that have attempted to use technology to “Uberize” Home Care. Over the
past few months, Home Hero called it quits, and left the home care marketplace. Honor has
announced it has changed its business model and is working to partner with existing home care
companies to manage the caregiver side of their business.

Now, HomeTeam, a technology focused home care company serving New York and New Jersey has
announced several changes:

Their founder, Josh Bruno has

stepped aside.
They have hired a new CEO,
Randy Klein. Klein joined
HomeTeam in the past few weeks, and comes from Remedy Partners, a company that managed
bundled payments for managed care, government, and providers who accept risk
The company announced that they are not accepting new private pay clients, and will focus on
Dual Eligible beneficiaries. These are seniors who qualify for both Medicare and Medicaid. In
New York State, there is a demonstration project to bundle services for dual eligible
beneficiaries.

It will be interesting to see how effectively HomeTeam can move into this space which is occupied
by a number of large established organizations. At Leading Home Care, we have worked with
several large not-for-profit home care agencies that are part of larger social services agencies, and
that have established relationships with the MLTC – Managed Long Term Care – companies in New
York serving dual eligible home care clients. Stay tuned for more details.

MORE DISRUPTIVE TRENDS WE ARE WATCHING

Consolidation in Private Pay – we are seeing the very early stages of consolidation in our
sector. We’ve been watching this for a decade, but little has happened until the past year. Now
we are seeing more and more private pay home care companies growing by acquiring other
independent companies. We see home health agencies and senior living organizations acquiring

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independent agencies. And we see several franchise companies acquiring independent home
care companies and operating them as company owned offices under the franchise brand name.
Increase in Government Payers – we have been watching as more and more larger home care
companies have moved into the Medicaid Waiver sector. The expansion of Medicaid under the
Affordable Care Act has opened some new opportunities for home care companies that have
previously focused on private pay. Then we heard the announcement in April 2018 that CMS
was going to allow Medicare Advantage plans to offer in-home support services. (See our article
on Home Care Services under Medicare Advantage.)
Caregiver Turnover Continues to Rise – the 2018 Home Care Benchmarking Report from Home
Care Pulse just came out, and they report that Caregiver Turnover increased again this year, to
66.7%. The report also shows that the biggest threat to home care companies is the Caregiver
Shortage. The report also for the first time shows a correlation with pay rates and retention.

Stay On Top of the Trends with a Home Care CEO Mastermind Group

To stay on top of the forces and trend shaping the future of the home care industry, you need to be
in regular communication with other thought leaders in the industry. The best way to do that is to be
part of a Home Care CEO Mastermind Group. The Home Care CEO Forum now has openings in
several of our CEO Mastermind Groups:

The Strategic Growth Group – this

is a group of up to 14 companies
that generate between $1.5 and $3
million in annual revenue, and who
want to be in the Top 5% of the
industry. We have four openings in
this group.
The Top 10% Group – is a group of
12 companies between $3 million
and $7 million in annual revenue.
We have two openings in this group.
The Top 7% Group is our newest
group and is forming in the summer
of 2018. This will be 12 companies between $5 million and $8 million in revenue. We currently
have 9 companies that have expressed an interest in being charter members of this group.
The Top 5% Group is the oldest and largest group. There are 12 companies that generate
between $7 million and $25 million in annual revenue. This group is full, with a waiting list, and
that is why we have decided to start the Top 7% Group.

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Each group meets twice a year face to face to share ideas, solve problems, and support one
another. A big topic of conversation at our mastermind meetings is the trends shaping the future of
our industry. These groups also meet in between formal meetings by online video conference to
have discussions about specific issues that the group has identified.

If you are a non-franchise, independent home care company in the top tier of our industry, and you
would like to be connected with other CEOs and COOs in the top tier, consider becoming a member
of a Home Care CEO Mastermind Group. There is no where else in our industry where you can
have access to the latest ideas, strategies, and trends to grow your business and get ready for the
future. Join a Mastermind Group Today!

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