Diversifying into Private Pay Home Care * a Case Study
Transcript Diversifying into Private Pay Home Care * a Case Study
PRIVATE PAY HOME CARE
A CASE STUDY
PRESENTED TO LEADING AGE
PEAK LEADERSHIP SUMMIT
MARCH 19, 2014
MARK ZWERGER, PRESIDENT AND CEO
THE OSBORN NETWORK, RYE, NY
THE OSBORN - BACKGROUND
105-year-old charitable organization on
54-acre campus in Rye, NY
First 60 years a life care community for women
Became a licensed nursing home under Title XVIII
1991-2001: $120 million expansion and renovation
project to create a 21st century CCRC
Today we are CARF–CCAC accredited, Fitch Astable rated, 382 unit fee-for-service CCRC and
home care company:
188 Entry Fee IL apartments, 17 Rental IL apartments
80 Assisted Living beds, 13 Memory Care beds
84-bed Skilled Nursing Facility
132 caseload home care agency.
WHY HOME CARE?
March 1995 Osborn Management recommended
establishing a home care agency with five missions:
“1. Meet the care needs of The Osborn's assisted living population
2. Provide intermittent home care to independent living residents in
their apartments or garden homes
3. Provide private duty care to residents of The Osborn Health Care
4. Provide home care services in the community targeted at
prospective residents in our primary market, especially people on
our waiting list
5. Provide follow-up home care to residents discharged to the
community from The Osborn Health Care Center.”
• Opened Sterling Home Care in
January 1996 as a Licensed Home
Care Services Agency (LHCSA) in
New York serving Westchester and
surrounding NY counties
• 1996-2002 grew nicely to $5 million in
• 2002–2007 business levels off at
about $5 million in annual revenues.
• Re-Launched the business under a new
name “Osborn Home Care” in 2007
• Doubled the business in six years - from
$5 to $10 million in revenues
• We have learned how to effectively
manage a much larger agency
• Looking to take the next step in growing
Contribution to Bottom Line
Performance 2008 - 2012
2008 - 2012 five year summary
OSBORN HOME CARE CENSUS OF
132 CASES AS OF 2/6/2014 BY
Pavilion SNF, 17
Sterling Park IL,
61% on-campus clients vs. 39% off-campus.
We provide about 60% of the total private duty
care on the campus. Nearly one in five
residents of our CCRC purchases some level
of home care from us.
KEYS TO SUCCESS IN HOME CARE
Hire home care professionals experienced in running a
community home care agency – it’s not a CCRC!
Differentiate the product – create a value proposition for the
Spend money educating the public and building your brand.
Hire great staff, screen them thoroughly, weed them out
quickly, train and retrain and retrain. Compensate them
fairly and give them hours; treat them well.
Provide consistent, thorough, ongoing nurse supervision
and support for your aides.
Build-in quality controls and audits from the beginning.
Get regular feedback from your clients. If your customers
are happy the business will grow.