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Transforming SNF to HHA Referrals: Discover How to Achieve Seamless Care Transitions

The healthcare landscape faces significant challenges in seamlessly transitioning from skilled nursing facilities (SNFs) to home health agencies (HHAs). Mr. Johnson, an 85-year-old patient, experienced a preventable hospital readmission due to a disorganized referral process, where incomplete information sharing between the SNF and HHA resulted in delays in receiving necessary medical equipment. Too often, this scenario is a reality. This blog explores the critical issues surrounding the referral process and the steps in resolving them.

Published on

March 25, 2025

The Challenge of Choice: Identifying the Best Home Health Agency for Patients

When patients at a skilled nursing facility (SNF) are preparing for discharge with orders for home health services, SNFs typically provide them and their families with a list of potential home health agencies (HHAs), along with resources like the CMS website's "Find and Compare Home Health Providers" tool. However, the information on these resources can be outdated, failing to offer a comprehensive view of each HHA's current capabilities and quality of care. For example, as of this writing, the CMS website displays the Quality of Patient Care survey results from April 2023 to March 2024 and data on the Preventing Unplanned Hospital Care measure from January 2023 to December 2023. Given the potential for significant changes between data collection periods and current operations, it is crucial for SNFs to have access to current quality HHA outcomes and to identify which HHAs are effective partners in coordinating care.

SNFs are pivotal in guiding patients and families through this process, as they are responsible for ensuring safe transitions. The quality of care provided by HHAs directly impacts the reputation of SNFs, as subpar care can lead to negative feedback from hospitals who initially referred the patient. Moreover, SNFs are following the trend set by managed care organizations (MCOs) and accountable care organizations (ACOs), which have begun narrowing their networks of HHA partners. This shift underscores the importance of forming strategic partnerships with HHAs that can deliver high-quality care, ensuring that SNFs remain competitive in this evolving landscape.

The Why: Importance of Strategic Partnerships

Selecting a home health provider is not just about finding a service; it's about forming strategic partnerships that enhance patient outcomes and compliance with regulatory requirements. With the increasing emphasis on value-based care and care coordination, SNFs must carefully evaluate potential partners to ensure they align with their goals and standards.

The Stark Reality: Current Challenges

SNFs are required to support patients and families in selecting appropriate HHAs based on their care needs. This involves ensuring that HHAs have the clinical capabilities to manage patients' ongoing medical recovery needs. While specific regulations like F627 and F628 do not directly address clinical capabilities, SNFs must ensure that referrals are made to agencies that can provide necessary care.

  • Care Coordination: Effective care coordination is essential for seamless transitions between SNFs and home health providers, yet it often faces challenges due to the lack of processes, technology, and inefficiencies.
  • Patient Outcomes: The quality of care provided by home health agencies directly impacts patient outcomes, making the selection process critical for reducing readmissions and improving health results.
What's Changing?
  • Value-Based Care: The shift towards value-based care models emphasizes the need for SNFs and HHAs to focus on outcomes rather than volume, necessitating more strategic partnerships.
  • Regulatory Updates: Evolving healthcare regulations require SNFs and HHAs to adapt their practices to maintain compliance and avoid penalties. Notably, the ECRI Institute has identified "Inadequate Communication and Coordination during Discharge" as one of the top patient safety concerns for 2025, highlighting the critical need for robust referral processes supported by technology to ensure seamless care transitions and mitigate potential risks.

The Hidden Dangers: Risks of Inadequate Partnerships

  • Patient Safety: Inadequate care coordination can lead to errors, missed appointments, and other safety issues.
  • Financial Risks: Poorly managed transitions can result in financial penalties due to readmissions and non-compliance.
  • Reputational Damage: Poor care transitions can significantly harm a SNF's reputation, reducing future referrals and impacting business sustainability.

The Cost of Inaction

Failing to address these challenges can lead to significant financial losses, reputational damage, and, most importantly, compromised patient care. Inaction also means missing opportunities to leverage technological advancements and value-based care models that could improve outcomes and efficiency.

Current State of Referrals: Inefficiencies and Risks

According to Justin Steele, Senior Vice President of Strategic Growth at Elara Caring, "Currently, referrals from skilled nursing facilities (SNFs) to home health agencies (HHAs) often lack a standardized process, with communications arriving via multiple channels such as email, fax, or phone. Moreover, these referrals frequently occur too close to discharge, typically within one or two days, which limits the opportunity for home health liaisons to visit patients and ensure a smooth transition. In some cases, a single referral may involve all three modes of communication prior to discharge, leading to a disjointed trail of events. This inconsistency can result in inefficiencies and potential patient care challenges due to incomplete information sharing and uncertainty about whether HHAs possess the necessary clinical capabilities to manage a specific patient's care effectively."

Conclusion: The Imperative for Robust Referral Processes

Skilled nursing facilities (SNFs) face mounting challenges in ensuring seamless transitions for patients requiring home health agency (HHA) services. Disorganized referral processes result in incomplete communication, delayed care, and preventable hospital readmissions. For SNFs, these inefficiencies undermine patient safety, trigger financial penalties from Medicare, and tarnish reputations among referral partners.

On the other hand, HHAs are discouraged by the risks of receiving patients from SNFs without thorough discharge planning or standardized referrals—this lack of coordination leads to suboptimal care delivery, impacting patient outcomes and satisfaction.

The absence of a robust referral process jeopardizes patient safety and creates operational inefficiencies that ripple through SNFs and HHAs. Without standardized practices supported by technology, healthcare providers risk falling behind in an era dominated by value-based care models.

Adopting innovative solutions that streamline referrals, improve communication, and ensure seamless patient transition to appropriate care settings is essential to mitigating these risks and fostering collaboration between SNFs and HHAs. By addressing these systemic issues, healthcare organizations can reduce readmissions, enhance patient outcomes, and secure their place in the competitive healthcare landscape.

Contact OLIO today to explore how an optimized referral process can transform your approach to effective care transitions.

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