Lessons Learned from the COVID-19 Pandemic on Accounting for Healthcare Agencies

You might have heard, but just in case you haven’t, there’s been this pandemic happening. Oh, and in case you thought it was over, it’s very much not.  

That part probably won’t be a surprise to you if you’ve been doing any bookkeeping or accounting in any field remotely related to healthcare.  

I don’t bring this up to rub salt in the wounds from the devastation of your personal, social, and business life, but rather to talk about what we can learn from this disaster.  

And yes, COVID’s effects on the planet can honestly be described as a disaster. 

The New Normal 

The biggest thing we all learned from the pandemic was that most accounting departments for hospice and home care businesses were unprepared for what was to come.  

This observation is not intended as an insult; no one seemed ready for such a widespread panic (except maybe for some preppers in the mountains). But the pandemic did show us that some changes needed to be made. 

One of the biggest changes we all quickly realized was a widespread need to work from home.  

Cloud software solutions, Software as a Service (SaaS), and teleconferencing are no longer luxuries for larger, more wealthy companies, nor are they reserved for employees who need to work remotely because of an injury.  

These services are now part of our everyday lives. Knight Home Care Financial has adopted them all in an attempt to make life less stressful for our customers.  

Connecting Everywhere 

Good bookkeeping and financial services are necessary at the best of times, but now that we realize we can all be separated at a moment’s notice, solid record keeping seems even more essential.  

Backing up files to online sources rather than just paper ones is something everyone needs to be doing. This process makes it easier when companies need to outsource accounting.  

Yes, the dirty word, “outsourcing.”  

Sorry to break it to you, but with how cash-strapped the hospital system is, outsourcing accounting services to some extent is necessary.  

This tactic gives hospice and home care CFO’s some needed backup manpower at a cheaper cost so the lights can stay on. 

Shifting Spending 

Because these new digital pieces and parts require money, they take the place of bricks and mortar for capital spending. Accountants will see more proposals for program suites than office suites.  

With that being said, health care providers are spending more on physical objects, such as personal protective equipment, including masks, gloves, hand sanitizer, and other cleaning supplies.  

Budgets have been, are, and will be tight. Safety regulations and an increased level of reporting stretch departments thin, but these regulations and reporting are what will keep people safe.  

Personnel spending will look different than it has, especially for hospice and home care. Companies will need backup staff in case of COVID illness or exposure since residents and home care patients will still need hands-on assistance. 

Relief 

By now, most of you will have heard of or experienced the Paycheck Protection Program (PPP). These funds helped sustain operational and accounting costs.  

The question is, if the Delta variant (and other variants coming down the pipeline) wreak enough havoc, will we have more of those funds become available?  

Unfortunately, new PPP loans ended on May 31st. However, you can still apply for PPP loan forgiveness.  

The Families First Coronavirus Response Act gave employees the ability to take paid sick leave for COVID-related issues.  

While this is currently set to end on September 30th, Congress could extend it again. It has already been extended once. Participating employers did and do get tax credits for the leave they offered employees. 

Fraud and Scams 

This blog post will get more positive soon, I promise!  

However, home care and hospice providers need to remind their residents and patients that scams will continue and grow.  

This growth can make life difficult for you from an accounting standpoint because patients can give private information, such as Medicare ID numbers, to scammers.  

Scammers can steal money or have supplies ordered and sent to the wrong people, and you will have a nightmare on your hands. Knight Home Care Financial can help you create effective anti-fraud practices and procedures.  

The Good News 

Okay, so let’s talk about some of the positive lessons of the pandemic.  

More software has been developed and refined to make our jobs easier than ever before.  

Stricter reporting standards have made residents and patients in the health care system safer.  

Cloud services, which were once a luxury, keep files and documents more safe and secure than on paper. Filing paperwork and reporting is almost entirely digital now and far faster than physical filing ever could be.  

If there’s any lesson we’ve all learned in accounting over the past year and a half, it’s that we can make it through, survive, thrive, and serve. Knight Home Care Financial is at your side and ready to answer the call for any of your developing needs, no matter how bad it gets.

 

About Knight Home Care Financial

Knight Home Care Financial is a Texas-based accounting firm that provides innovative accounting solutions for providers in assisted living, home health, hospice care, and nursing facilities. By focusing solely on post-acute and long-term health providers, the firm is able to offer tailored services that meet and simplify the business and regulatory demands of the industry. For more information, visit www.knighthcfinancial.com.