How PEOs Are Transforming the Home Health Care Industry
The home health care industry is currently experiencing significant growth and transformation. According to the U.S. Bureau of Labor Statistics, employment of home health and personal care aides is projected to grow 21% from 2023 to 2033, much faster than the average for all occupations. This surge is driven by an aging Baby Boomer population and a preference for in-home care. However, agencies face challenges such as workforce shortages, regulatory compliance, and operational inefficiencies.
Professional employer organizations (PEOs) are stepping in to address these issues, providing comprehensive solutions that relieve agencies of the burden of workforce management, allowing them to focus on delivering quality care.
Addressing workforce shortages and enhancing retention
One of the biggest headaches for home health care providers is recruiting and retaining qualified caregivers. The nature of the work, often physically demanding, emotionally taxing, and irregularly scheduled, combined with a competitive labor market, makes it challenging to keep caregivers engaged and loyal. Group Management Services (GMS)offers strategic solutions to this problem by simplifying hiring through access to broader talent pools and providing centralized recruiting support.
Beyond recruitment, PEOs also help home health agencies offer benefits packages typically unavailable to smaller businesses, including health insurance, retirement plans, and wellness programs. These enhanced benefits boost employee satisfaction and retention, which is vital for maintaining continuity of care and controlling operational costs.
Ensuring compliance and mitigating risks
Home health care providers must navigate a complex regulatory landscape, including requirements from the Occupational Safety and Health Administration (OSHA), the Health Insurance Portability and Accountability Act (HIPAA), as well as state-specific licensing and employment laws. Noncompliance can result in hefty fines, legal liabilities, and damaged reputations. GMS’ expertise in human resources (HR) compliance ensures agencies stay up to date with changing regulations.
By managing payroll, workers’ compensation, and benefits administration through a PEO, agencies reduce their risk exposure and gain peace of mind. PEOs also take a proactive approach by helping implement workplace safety programs tailored to home care environments, reducing injury risks. This proactive approach not only protects employees but also shields agencies from costly claims and litigation, ensuring compliance and risk mitigation.
Optimizing operational efficiency
For many home health care providers, administrative tasks like payroll processing, tax filings, and benefits management consume time and resources that could be better spent on patient care and growth. GMS’ services streamline these functions by providing advanced HR software and dedicated HR professionals who handle day-to-day administrative work efficiently and accurately.
This eases the administrative burden on small to midsize agencies, allowing leadership and caregivers to concentrate on service delivery. Automated HR systems also enhance accuracy and ensure compliance with tax laws, reducing costly mistakes and potential audits. The outcome is a more streamlined, efficient operation that promotes sustainable growth and improved patient outcomes.
PEO Benefits For Home Health Care Agencies
The home health care industry is changing rapidly. Agencies that neglect workforce retention, compliance, and operational issues risk falling behind competitors and compromising patient care. Partnering with a PEO like GMS offers a comprehensive solution that equips home health care providers with the tools they need to succeed. With GMS’ specialized industry knowledge and hands-on guidance, agencies can confidently handle complexity and stay focused on delivering compassionate, high-quality care where it’s needed most.
“Our experience with the payroll managers and payroll processing services has been fantastic. We’ve been extremely pleased. GMS has been an invaluable resource. In addition, GMS assisted in implementing the Drug Free Workplace and Professional Development Program (PDP) programs. Without GMS, we would never have accomplished our goals. In short, our partnership with GMS and their staff has been a rewarding experience.”
– Business owner, Home Health Care Organization
For more information on how GMS can support your home health care agency, contact us today!