Applying a Nine Cell Financial Analysis Model to Home Health Care

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Executive SummaryThe Nine Cell Financial Analysis Model provides an approach to evaluating the impact of strategic initiatives to overall financial performance.The nine elements of the model address volume, net revenue, unit price, productivity, markup ratio, quantity of resources applied, expenses, unit cost of resources applied, and economic performance.Within the discussion of volume, the authors explore actual and potential referral streams from both internal and external sources.The influence of payer mix and market stage clearly play a role when evaluating net revenues and unit pricing strategies.While we maintain the most direct control over expense management and productivity, these cells can be vulnerable to increases in regulatory requirements that increase indirect care time.The authors explain a tool that would be useful in any setting of any business, it also contains several performance benchmarks and strategies unique to the home care industry.

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