The Benefits of Diversifying a Hospice’s Referral Mix

In light of evolving dynamics within the healthcare sector, hospices find themselves compelled to diversify their sources of referrals. Factors driving this imperative transformation encompass value-based payment models, workforce shortages, heightened regulatory scrutiny, and reimbursement stagnation via escalating costs, as per a recent report by Transcend Strategy Group. The landscape further shifts with the advent of major payer companies, demographic trends, and a burgeoning emphasis on health equity. Relying solely on a solitary referral source, such as hospitals or skilled nursing facilities (SNFs), is deemed excessively perilous in this era, warns Transcend's President and CEO, Stephanie Johnston. Singular focus on one referral channel can intensify competition among providers. Furthermore, some referral entities may have financial incentives misaligned with early hospice referrals or engagement with a particular provider. In response, hospices should contemplate patients and families as potential referral sources, while ramping up consumer-oriented marketing efforts.