Increasing Net Income through Rehabilitation Department Excellence

Explore how one health system improved their rehabilitation capabilities to grow their outpatient net income by more than 32% in one year

The Challenge

When a nonprofit health system in the Northeast sought opportunities to grow their rehabilitation department, they contacted CPS Rehabilitation ServicesSM, a division of CPS, to discuss areas where their physical therapy and occupational therapy services could be improved to provide greater value for their caregivers, patients, and staff.

In partnership with the health system’s leadership, the CPS team reviewed their existing rehabilitation capabilities and conducted a thorough analysis of recent performance. Following this work, CPS presented findings and an action plan for pursuit of the health system’s financial and operational rehabilitation goals.

The CPS team also discussed contemporary trends affecting rehabilitation departments across the nation. Following these conversations, the health system and CPS worked in tandem to begin the execution of their plan.

Among results sought by the health system’s leadership were overall increases in:

• NET INCOME IMPROVEMENT
• GROSS REVENUE
• SPECIALTY REFERRALS
• SATISFACTION SCORES from patients, physicians, nurses, and leadership

The Solution

• INCREASE OUTPATIENT NET INCOME AND GROSS REVENUE
• FULLY IMPLEMENT PHYSICAL THERAPY (PT) AND OCCUPATIONAL THERAPY (OT) in the emergency department
• CREATE AND IMPLEMENT AN ANNUAL MARKETING PLAN with a goal of participating in 40 events/outings/provider visits
• INCREASE SPECIALTY REFERRALS by four referrals per month over 12 months
• IMPLEMENT SWING BED MANAGEMENT with ADC of eight for 10 months
• INCREASE OUTPATIENT MARKET SHARE BY 15% with an increase in PT, OT, and SLP evaluations from the previous fiscal year’s baseline
• DEVELOP AND IMPLEMENT AN IPR UNIT to open by mutually agreed upon date

Financial Impact

• Net income for the previous fiscal year (Oct–Sept) - $1,978,136
• Gross revenue for the previous fiscal year (Oct–Sept) - $6,395,549
• Net income for the fiscal year (Oct–Sept) - $2,612,295
• Gross revenue for the fiscal year (Oct–Sept) - $7,844,125

Customer Satisfaction

Following the implementation of process improvements, the health system’s rehabilitation staff was more satisfied and empowered in their
work. This resulted in higher satisfaction survey results for physicians, nurses, and leadership. Patient scores also improved.

Satisfaction Score Results

(note: 5 represents a perfect score)

Patient Satisfaction 4.88
Physician Satisfaction 4.62
Nursing Satisfaction 4.68
Leadership Satisfaction 4.93

Key Accomplishments

CPS delivered data supported results to the benefit of the health system’s patients, caregivers, and staff.

CPS helped the health system realize a significant net income improvement. With an emphasis on attainable process improvements that could generate efficiencies, revenue, and improved patient experiences, the CPS team supported health system leadership in bringing a new level of performance excellence to their physical therapy and occupational therapy departments.

KEY ACCOMPLISHMENTS

• Net Income Improvement of $600,000+ or 32.1% year-over-year
• OP gross revenue increased by 18.19% for the fiscal year
• PT & OT in emergency department implemented in September 2021
• 24 patients seen in the emergency department to date
• 250 Provider visits
• Implemented swing bed management for FY2022
• 11 Community outreach events
• Introduced impactful Marketing Initiatives to build ADC