Hilton Head, South Carolina
Project Experience

Financial Information Systems, Revenue Recognition, Cost Accounting and Benchmarking

Laff Associates has designed Financial Information Systems for both free-standing and hospital-based home health agencies that utilize accurate revenue recognition in relationship to expenses incurred. Examples of these projects include:

  • Designed new "Statement of Operations - Revenue and Expenses" and worked with the agency's financial executive to create a functional cost accounting system, following AICPA standards, for a large multi-office, multi-product line proprietary agency in northwestern South Carolina.

  • Designed new "Statement of Operations - Revenue and Expenses" for hospital-based home health agencies in the states of Oregon, California, Nevada, Ohio, New York, Virginia, Pennsylvania, Louisiana, and Missouri to facilitate cost accounting techniques to determine accurate direct, indirect and total costs by service line, including medical supplies.

The format designs were operationally specific, providing management with optimum financial information utilized in the daily decision-making process, including unit costs and service-line gross profit margins for each product-line. Home Health Care agency benchmarks were developed to target unit costs of services and products provided, revenues and gross profit margins related to diagnosis, not HHRGs and staff productivity. Where applicable, the benchmarks included the incorporation of advanced clinical technology and tele-health into the provider's Standards of Clinical Practice.

Laff Associates designed a NAHC approved Medicare PPS Revenue methodology that recognizes revenues by service line visit and medical supplies and that provides the ability to measure the respective gross profits. It also reconciles the recognized revenue for each closed episode with the actual HHRG payment in month that the episodes closed.

NAHC Annual Meeting 2013 - 2014 A Watershed Year! NAHC Annual Meeting 2013 - Hospice Clinical Compensation - Aligned Incentives