Thinking About Home Care Fuel Reimbursement Reductions

One Home Care traveling clinician, visiting between 5 and 8 patients a day might travel 100 miles in one day.  At $0.55 per mile she or he will submit a reimbursement request for $55.00.

$0.55 per mile x 100 miles = $55.00

If, through an optimized routing tool, the home care agency were able to reduce that route by 10 miles, the savings would look like this:

$0.55 x 10 miles = $5.50 saved for one day. This equates to a 10% savings.

Applied over every workday for one year that savings becomes:

$5.50 x 240 days = $1,320 savings per clinician per year.

How many traveling clinicians are there at your home care company?

10 clinicians = $13,200 savings per year

25 clinicians = $33,000 savings per year

50 clinicians = $66,000 savings per year

100 clinicians = $132,000 savings per year

The savings add up. 

  • So, think about how many driving clinicians, aides, and other service providers you reimburse for fuel. 
  • Think about the projected increases for fuel costs in 2012.
  • Think about a software tool that not only lowers fuel costs but improves productivity.
  • And think about the fact that a truly optimized route can reduce mileage traveled by up to 30% – not just 10% as noted above.

Think about it.

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