Developing your Administrative and Operation Systems for Your Private Duty Home Care Company

There are several fundamental systems you will need to develop:

1. Scheduling
2. Billing to clients
3. Billing to government agencies and other payors
4. Bookkeeping Systems
5. Time Keeping Systems
6. Customer Resource Management Systems
7. Client Record Keeping
8. Payroll
9. Benefits Administration
10. Continuing Education Record Keeping

These systems come at a variety of different costs and a variety of different levels of technology.  Generally speaking, the higher tech you get the increase you have in expense implementing the system.  However, higher levels of technology permit you more flexibility in growth and ultimately in profitability.  We strongly recommend that our clients develop a long-term strategic plan focused on improving technology as your company grows. 

Scheduling, Time Keeping, and Payroll – Your scheduling, time keeping and payroll systems are the three that should be well integrated.  Many companies run into problems when these three systems don’t work well together.  Your scheduling, time keeping and payroll should create a series of checks and balances to be certain that your caregivers are scheduled properly, work the time they are scheduled to work, and are paid for the work delivered. 

The most basic of these systems would utilize Microsoft Outlook and/or Microsoft Access.  You should migrate to more advanced systems relatively early in your company’s growth.  The investment in advanced information systems can be quite large.  Ultimately, your scheduling, time keeping and payroll will be critical to efficiency.  Most advanced information systems designed specifically for private duty home care will cost several thousand dollars upfront, and your organization will experience some slow down in operations during the learning curve of implementation.  This expense is a deterrent to many small agencies, however implementing a new system after your agency grows to a substantial size, can often be more disruptive.

• Information about several scheduling and time keeping systems are available in our Directory of Information Technology for Private Duty Home Care Agencies.

• Also, please read our article Twelve Things to Consider When Looking for Scheduling and Time Keeping Systems.

While you can certainly hire in-house payroll and benefits administrators, a growing trend is toward third party specialists.  Many of these companies can take information directly from your timesheets and turn it into direct deposits to your employees’ checking accounts.  These paycheck companies will cut checks, deduct taxes and benefits, and even file your employment tax records.  Most of them are able to provide this service for a few dollars per paycheck.  Most agencies find this to be a cost effective solution, particularly if you have less than 100 employees.  These paycheck companies can also cut paychecks for administrative staff and the owners. 

Coming soon, Private Duty Today will be publishing a Directory of Business Services.  Meanwhile, check your local yellow pages under Payroll Preparation Services. 

Bookkeeping and Client Billing

Bookkeeping and client billing can be done in-house or through a third party.  Most commonly, organizations keep this function in-house. 

The two most common bookkeeping systems are QuickBooks by Intuit and Peachtree Accounting by Sage.  Either of these systems or any of a variety of other accounting software will work.  One word of caution is that most private duty home care companies find that they prefer billing software that can be integrated with their scheduling and time keeping software. 

For more information we recommend reading our free article, Twelve Things to Consider When Evaluating Scheduling and Time Keeping Systems, and check out the bookkeeping section of our Directory of Information Technology for Private Duty Home Care Agencies. 

If you decide to go with third party billing, we recommend using a company that specializes in medical billing.  This can be more important if you have an agency that provides medical home care to people covered by insurance.  For more information about medical billing, visit our Directory of Business Services. (Coming Soon)