How Good Caregiver Utilization can Increase ROI

The only way you will be able to serve the community for an extended period is to do it efficiently, which means making a profit. No profit, no product.

When Gina and I were first asked to provide community based home care, we did our homework before delving in. We asked home care agency owners serving a community, as well as those that had done so in the past, about their experiences. We also talked to the executive directors of the very same communities those agencies serviced.

The agency owners we spoke to lamented that they just couldn’t manage community based home care services profitably. They said they never could get the right formula for pricing and delivery of services. That’s because they didn’t have real-time community based home care technology to give them a real-time view of how they were utilizing their caregivers and what the profit margin was.

The Caregiver Utilization-to-Profit Formula

Caregiver utilization measurement in CINCH CCM is simple. It represents the formula:

Caregiver utilization percentage = Total caregiver visit time per shift/total shift time

Our benchmark figure for caregiver utilization – where you’ll typically start to turn a profit – is 65%.

For example, if a caregiver on an eight-hour morning shift has twelve visits that add up to a total of 6 hours, the caregiver utilization for that shift is 75%.

Simple, but powerful. 

Monitor Caregiver Utilization with CINCH CCM

CINCH CCM allows you to measure caregiver utilization for the overall community, over a specified time-period or per caregiver. You can even add a caregiver utilization meter to the CINCH CCM home screen to give the management team real-time information on how they are operating the property.

With CINCH CCM, it’s easy to monitor figures like caregiver utilization and profitability to give the management team the insight and information they need.