Home health agencies are feeling the pain of the 2011 changes, and certainly most are not looking forward to 2012 changes. Right now smaller agencies are particularly feeling the burden of new regulations, and many have considered reducing employee work hours or even enforcing layoffs. Therapy companies are also uneasy about the potential reduction in therapy treatment coverage for patients. By now you have likely attended a seminar forecasting that the sweeping regulatory changes will result in the closure of 25% or more home health agencies.

Despite these trying times, home health organizations can continue to make the best of a difficult situation. If possible, do not reduce employee numbers. When you lay off an employee, you not only lose a valuable trained team member, it is unlikely that that employee will find another job soon. Thankfully most laid off employees will qualify for unemployment benefits, but the layoff process affects the person's pride, self-esteem and home life. In addition, it creates an anxious environment for your remaining team, which reduces morale and productivity. Try to keep as many employees in your workforce as possible.

Many states have a Shared Work Compensation program to help you keep employees in the workforce. For example, Texas has a Shared Work Compensation program. The Texas Shared Work Compensation plan is simple. When you reduce an employee's workweek, he or she can apply for unemployment benefits for the lost hours. The plan runs for one year and the employee can use it when necessary. The goal of the plan is to help companies keep employees employed. The application is simple and the approval time is typically within a few days. The Texas Shared Work Compensation staff is a great resource and very knowledgeable on how to keep your employees in the workforce. You may find out more about how your agency can apply for Texas Shared Work Compensation at: http://twc.state.tx.us/ui/bnfts/sharedwork.html

Below are a few examples of other states that offer a Shared Work Compensation program.

• Arizona: https://www.azdes.gov/main.aspx?menu=234&id=2196
• Kansas: http://www.dol.ks.gov/ui/html/swpempinfo_bus.html
• Missouri: http://www.labor.mo.gov/DES/Employers/shared_work.asp
• Washington: http://www.esd.wa.gov/uibenefits/faq/shared-work.php

Do you know if your state has a Shared Work Compensation program? Please share more information regarding this program and/or similar programs in your state here on the Home Health Blog.


Pamela Pruitt has over 20 years experience as an accountant, with a majority in public accounting specializing in health care industry such as physicians, anesthesiologists, dentists, hospitals/clinics, etc. Ms. Pruitt is the Chief Accountant at All Nursing Home Health Services, Inc. in Houston, TX, as well as a Certified QuickBooks Pro Advisor, Certified Public Bookkeeper and Certified Bookkeeper. After hours, she blogs on Jobing.com and runs a business providing services to small businesses such as bookkeeping, accounting, and software setup, among other services. To reach Ms. Pruitt, call (281)636-9929 or send an email to pruitt_pam@yahoo.com.