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CDC Administration & Case Management Fees … How Much Should I Charge?

11 Mar 2016

 

This depends on your cost base and how efficient you are at running your Home Care business.

 

The Administration Fee may include the following:

 

General Corporate overheads are usually determined throughout the annual budget process as they are based on a collation of all your head office costs including:

 

  • Staff costs including salaries and associated costs, staff training etc.

  • General Admin costs including advertising, depreciation on capital equipment, insurance, IT software licences etc.

  • Property expenses including building & equipment leases, cleaning, telephones etc.

 

Specific CDC overheads such as additional IT & Software such as the Client Management System, capital equipment such as laptops and printers, office costs if have a separate office to run CDC and the Manager’s salary and associated costs.

 

The Case management charge may include the following:

  • The case manager’s salary including on costs such as superannuation, specific training, travel costs etc.  You have to estimate the time they will spend with the consumer on an annual basis which includes direct contact and non-contact time.

  • The administration officers’ salary including on costs.  They are required to set up all the appointments, including the management of the rosters and liaising with the consumers and suppliers.  Their cost has to be factored into the case management charge out as it is preferable that they organise the services for the consumer based on it being cheaper for them to do it rather than a case manager.

 

There may be other costs specific to your organisation that should be included in your budget to determine your total charge out rate.  You may also build in your required profit margin.

 

I recommend charging this out at an hourly rate, similar to charging out a personal carer.  Using a percentage of the consumer’s package is not very transparent and difficult to explain to the consumer.

 

Please note:  At the present time, you are able to increase your profit based on being able to keep the balance of the consumer’s package once they leave the program however this is changing from February 2017.  Tip:  Keep track of this amount so you don’t include it in next year’s budget.

 

Contact Debra Ward at Care Collaborator via the web page www.carecollaborator.com.auor email debra@carecollaborator.com.au for assistance with Consumer Directed Care or if you are interested in a demonstration of the software developed to:

  • Simplify the data collection process and reduce the need for paperwork at the initial meeting with the consumer.  It allows the Case Manager to focus on what they are good at which is assisting the consumer with the services they require to comfortably remain living at home.

  • Allow case managers to travel light, only requiring a portable device to input the data.

  • Allow case managers to focus on what they are good at, creating job satisfaction and reducing turnover.

  • Provide the Home Care Manager with a dashboard showing each case manager’s consumer load and the number of unsigned Agreements.

  • Reduce the amount of data being re-keyed into other systems which ensures resources are being re-directed into more important areas.

     

     

     

     

     

     

     

     

     

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