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Right at Home CEO Allen Hager on how the company helps hospitals reduce their costs with its in-home care.
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Obama sworn in for a second term today however one of his.
First terms biggest accomplishments -- the Affordable Care Act but it's still faces opposition from business owners but there are some companies who think they found ways to profit from the new rules like her next guest.
Alan -- CEO.
Right at home courtesy Allan thanks for coming in.
-- thinks they have three -- -- Now Obama -- penalizes.
Hospitals that readmit elderly patients after within a thirty day timeframe.
And of course has been a lot of debate about you know this and whether that should the -- -- out.
Whether that hurts or helps the country long term the elderly long term but you -- -- found a way to take an opportunity find opportunity.
For your business -- that explain how.
Well I think you know what you're talking about the thirty day readmission window.
And the penalty around that is really the beginning shot if you will the whole array of programs.
In trying to restructure care for more efficiency.
I mean I think we're all aware of the cost with an ageing society.
United States for that matter around the developed world so you know the government has really -- together with businesses are looking how can we press those costs down.
Specifically the program -- your mentioning is rate reducing those -- admissions within that thirty day window.
Medicare is down that's a seventeen billion dollar problem.
And right at home we piloted three years ago -- program with a health system in North Carolina.
What we found is if you target some of the Medicare patients as are discharged.
And you provide services that right at home provides.
The support for every day activities in the home.
Look at their nutrition and their medications.
But you can actually reduce costs -- we fell -- a hospital North Carolina where actually saved a million dollars.
In one year without hospital and now we're we're pushing their program all across United States and I think.
Here's expand that out I think you could see the dollars a couldn't.
So let me just follow up but that's so you with the way you.
Profited from that was was taking -- percentage that money is saved from the hospitals.
No I mean we we're just providing the services that we normally okay so you -- you for hospitals which -- great for -- hospitals but you didn't actually take any money from them for those for that help.
No actually -- this is these are dollars that would have been spent.
And so -- the hospital actually pays for the services that we provide to the folks right after they're discharged from the hospital.
So it's really a win win for the hospital there they're saving not getting.
The readmission penalties and for Medicare overall there's fewer services -- to provide.
What's really important here we're doing this in the context.
A better quality service for the the patient.
They don't have to be readmitted back in the hospital which of course a negative outcome for them as well.
-- -- founded a pocket of opportunity that -- profiting from but I -- profits and understanding you expect your business to double in the next five years I have that correct.
Yes that is correct you know we have a franchise network now.
Of 200 franchisees.
All across United States -- in five countries and what we're finding there's such an enormous yeah.
For the kind of services we're providing people want to be able to stay in their homes so as you look at.
Demographics -- you look at the desire for consumers to be able to stay in their home.
All these people entering their 70s80s and ninety's.
They need a little bit help they don't need institutionalization.
They're turning to companies like right at home.
To help them stay in their homes by the way I'm surprised to see that China is on the on the list of one of the countries that you do business and how.
Are you are you catering to a particular class in China because -- Saudi -- there.
We know it's a fascinating story in China we actually had not planned to go there but our.
-- the master franchisee that we work there she did something very interest think.
She had me go into the homes of the Chinese.
When I visited there one point and yes it is does tend towards the middle and upper middle class there but they have the same problems that we do -- keeping their elderly people at home.
Fascinating.
Alan anchor thank you so much good stuff congratulations -- appreciate it well if --
