Building Referral Relationships with Hospitals and Skilled Nursing Facilities: A Guide for Home Health Agencies

For home health agencies, building and maintaining strong referral relationships with hospitals and skilled nursing facilities (SNFs) is not just a matter of marketing—it is a strategic imperative for growth, patient outcomes, and long-term sustainability. These healthcare institutions are key gateways where patients often transition to home-based care. Understanding how to cultivate trust, demonstrate value, and ensure seamless care coordination can position your agency as the go-to referral choice.

This article provides a comprehensive guide for home health agencies on how to develop and sustain effective referral relationships with hospitals and SNFs. We will explore referral dynamics, key strategies, compliance considerations, and practical steps your team can take to stand out in a competitive market.

Why Referral Relationships Matter

Access to Patients

Hospitals and SNFs discharge patients every day who need ongoing care at home. Without strong relationships, agencies risk being overlooked in favor of larger or better-known providers.

Improved Patient Outcomes

When a referral relationship is based on collaboration, patients experience smoother transitions, reduced readmissions, and higher satisfaction. This creates a cycle where providers see your agency as a partner in quality care.

Regulatory and Financial Incentives

Hospitals and SNFs are under increasing pressure from CMS to reduce readmissions and demonstrate value-based outcomes. By showing how your agency supports these goals, you align yourself with their priorities.

Understanding Referral Sources

Before developing strategies, it’s important to understand the motivations and pressures that drive referral decisions.

Hospitals

Hospitals are focused on:

• Readmission reduction: CMS penalizes hospitals with high readmission rates. A reliable home health partner helps them achieve better outcomes.

• Throughput: Hospitals want efficient discharges. Agencies that can quickly accept and initiate care are highly valued.

• Patient satisfaction scores: Positive experiences with home health contribute to higher HCAHPS scores.

Skilled Nursing Facilities (SNFs)

SNFs prioritize:

• Shorter lengths of stay: Medicare and managed care contracts often push SNFs to discharge patients as soon as safely possible.

• Safe transitions: They need assurance that patients won’t boomerang back into the SNF or hospital.

• Ongoing collaboration: Agencies that provide timely updates and feedback make SNFs look good to families and payers.

Strategies for Building Referral Relationships

1. Demonstrate Value Through Outcomes

Referral sources want proof, not promises. Track and share measurable outcomes such as:

• Hospital readmission rates for your patients.

• Average time to first visit after referral.

• Patient and caregiver satisfaction surveys.

• Wound healing, medication adherence, or therapy progress data.

Providing data-backed results shows your agency is more than a vendor—it’s a partner in their success.

2. Prioritize Speed and Responsiveness

Hospitals and SNFs operate under tight timelines. To win their confidence:

• Maintain a dedicated referral intake team.

• Ensure availability for same-day or next-day admissions.

• Communicate quickly—confirm referral receipt and give status updates.

Agencies that consistently respond faster are often chosen over larger competitors with slower processes.

3. Develop Professional Relationships

Behind every referral decision are individuals—discharge planners, case managers, social workers, and physicians. Building rapport with these professionals is critical.

• Schedule regular in-person or virtual visits to introduce your services.

• Host lunch-and-learn sessions with clinical staff.

• Offer to provide educational sessions on topics like fall prevention, wound care, or chronic disease management.

These activities position your agency as a trusted resource, not just another vendor.

4. Support Seamless Care Transitions

Smooth care transitions are the hallmark of strong partnerships. Agencies can distinguish themselves by:

• Assigning a dedicated liaison who coordinates discharges.

• Conducting warm handoffs between hospital/SNF staff and your clinicians.

• Using secure communication platforms for real-time updates.

The easier you make it for discharge planners, the more often they will refer to your agency.

5. Build a Reputation for Specialized Care

Specialization can set your agency apart in a crowded market. Hospitals and SNFs often look for agencies with expertise in:

• Wound care

• Cardiac and pulmonary rehabilitation

• Neurological conditions (e.g., stroke recovery)

• Palliative and hospice transitions

• Orthopedic recovery

By highlighting your specialized programs and certified staff, you become the first call for complex cases.

6. Leverage Technology for Better Collaboration

Hospitals and SNFs are increasingly adopting electronic health records (EHRs) and interoperability tools. Agencies can enhance relationships by:

• Investing in EHR systems that allow secure data exchange.

• Providing referring partners with real-time access to patient progress reports.

• Using telehealth for timely interventions and virtual updates.

Technology integration reduces friction and strengthens your credibility as a modern, forward-thinking provider.

7. Ensure Regulatory and Compliance Excellence

Hospitals and SNFs cannot risk referrals to agencies with compliance problems. Demonstrating your agency’s commitment to quality is essential.

• Stay survey-ready and highlight your compliance track record.

• Maintain robust infection control programs.

• Emphasize staff training and continuing education.

• Align your processes with CMS Conditions of Participation.

A strong compliance reputation gives referral sources peace of mind.

8. Provide Consistent Feedback Loops

Referring providers want to know their patients are safe. Keep them updated by:

• Sending admission confirmations.

• Sharing progress notes at agreed intervals.

• Notifying immediately about significant changes in condition.

• Closing the loop with discharge summaries.

When hospitals and SNFs feel informed, trust builds—and referrals increase.

9. Build Trust with Families

Families often influence referral decisions. Position your agency as family-centered by:

• Meeting with patients and families before discharge.

• Providing clear education on the home health process.

• Offering 24/7 on-call support for peace of mind.

When families advocate for your agency, discharge planners take notice.

10. Maintain Consistency and Reliability

Ultimately, referral relationships depend on reliability. Every referral is a test—if you deliver consistently high-quality care, the relationship grows stronger. If you stumble, even once, hospitals and SNFs may hesitate to refer again.

Overcoming Common Challenges

Competing with Larger Agencies

Large national agencies may have name recognition, but smaller agencies can compete by emphasizing:

• Personalized, local care.

• Faster responsiveness.

• More attentive communication.

Gaining Initial Access

It can be difficult to get in front of hospital and SNF staff. Persistence is key—combine direct outreach with educational offerings and networking through community health coalitions.

Maintaining the Relationship

Relationships can fade without consistent effort. Create a referral relationship management plan that includes scheduled visits, regular updates, and ongoing collaboration opportunities.

Case Example: The Power of Responsiveness

One mid-sized home health agency noticed their referral rates from a local hospital declining. Upon review, they realized delayed admissions were frustrating discharge planners. The agency restructured intake to ensure every referral was contacted within one hour and admitted within 24 hours when possible. Within six months, referral volume from the hospital increased by 35%.

This example illustrates how addressing a single barrier—speed—can transform referral relationships.

Practical Action Plan for Agencies

1. Audit Current Performance

   • Review current referral patterns.

   • Identify strengths and weaknesses in responsiveness, outcomes, and communication.

2. Build a Referral Relationship Team

   • Assign dedicated liaisons for hospitals and SNFs.

   • Train staff in customer service and relationship-building.

3. Create Value-Oriented Materials

   • Develop one-page outcome summaries.

   • Prepare presentations showcasing specialized programs.

4. Schedule Regular Outreach

   • Meet discharge planners and case managers quarterly.

   • Offer to present at staff meetings.

5. Invest in Systems

   • Implement or upgrade EHR and telehealth tools.

   • Standardize communication templates for referral updates.

6. Track Progress

   • Monitor referral trends and feedback.

   • Adjust strategies based on results.

The Long-Term Vision

Referral relationships are not built overnight. They require consistent effort, transparency, and proof of value. When nurtured, these partnerships create a steady pipeline of patients, strengthen your reputation, and improve the quality of care across the continuum.

For home health agencies, the goal is to become more than a referral option—you want to be the preferred partner hospitals and SNFs trust for their patients’ safe, seamless, and high-quality care transitions.

Conclusion: Partner with Experts to Strengthen Your Strategy

Building and sustaining referral relationships with hospitals and skilled nursing facilities is a multi-faceted effort that requires strategy, persistence, and clinical excellence. While every agency can take steps outlined in this guide, some challenges—such as aligning compliance practices, leveraging technology, or crafting referral growth strategies—benefit from expert guidance.

If your agency is ready to strengthen referral networks, streamline operations, and position itself as the partner of choice for hospitals and SNFs, SummitRidge Consulting can help. With proven expertise in home health and hospice consulting, SummitRidge provides tailored solutions to help agencies grow while maintaining compliance and quality.