Every year, home care agencies face a predictable yet painful drop in revenue between 10% and 20% during December.
It’s not a mystery—it’s a pattern.
Caregiver time-off requests, family visits, hospitalizations, and even client deaths all combine into a perfect storm that disrupts schedules and cash flow.
But here’s the good news: agencies that plan now can build a revenue cushion strong enough to absorb the hit and finish the year ahead.
This article summarizes a recent Approved Senior Network® webinar led by Dawn Fiala, Annette Ziegler, and Lisa Marsolais, sharing field-tested strategies to protect your agency’s bottom line and momentum heading into Q1.
Why December Revenue Drops
Even the best-run agencies experience a dip due to compounding factors:
- Family caregiving increases: Adult children visit and temporarily pause services.
- Client hospitalizations rise: Cold, flu, and stress-related health issues spike in winter.
- Caregiver time-off requests: Staffing gaps increase and clients decline substitutes.
- Higher mortality rates: Sadly, December and January see more senior deaths.
Each issue alone might reduce 5–10% of billable hours. Together, they interact—magnifying losses well past 20%.
Strategy 1: Front-Load Billable Hours
Maximize September–November utilization to pad Q4 numbers.
Key Actions:
- Audit caregiver schedules weekly: Identify underused caregivers—especially after client discharges or deaths.
- Increase visit frequency: Use supervisory visits to check if clients need more help or could benefit from added hours.
- Accelerate onboarding: Develop systems to start care same-day or next-day after intake or discharge.
- Communicate urgency: “We can start tonight” builds trust with social workers and starts revenue faster.
By pulling hours forward, agencies stabilize income before the seasonal dip begins.
Strategy 2: Double Down on Referrals
Most competitors slow their marketing in November and December.
That’s your window to shine.
What to Do:
- Intensify outreach to hospital discharge planners and SNF social workers.
- Host lunch-and-learns: Teach “What Happens After Discharge” to educate referral partners on post-acute care challenges.
- Launch a “Pumpkin Decorating Contest” or school partnership project: Build relationships and visibility.
- Ask existing families for reviews and referrals: Positive Google reviews drive both trust and SEO.
Pro Tip: Referral partners want to learn, not just chat. Teach them something valuable about home care transitions.
Strategy 3: Motivate and Retain Caregivers
December morale determines January retention.
Without motivation, you’ll lose both staff and hours.
What Works:
- Holiday Shift Raffle: Each shift worked during Oct–Dec earns an entry for prizes—TVs, gift cards, or bikes.
- Flexibility: Proactively schedule around time-off requests to prevent last-minute call-offs.
- Recognition: Use text shout-outs, caregiver newsletters, and drawings to celebrate picks-ups and reliability.
- Holiday Party or Open House: Keep the office open all day so caregivers can stop by for food, gifts, and appreciation.
Retention equals revenue. Happy caregivers cover more shifts and reduce client disruption.
Strategy 4: Maintain Operational Consistency
Forecasting and communication are everything during the holidays.
Implementation:
- Call clients early: If a client plans to cancel on Christmas, move their visit earlier in the week to preserve hours.
- Confirm every holiday shift: No caregiver should show up to an empty home.
- Charge time-and-a-half thoughtfully: If clients decline, reschedule rather than lose the revenue entirely.
- Plan backup staffing: Train float caregivers to fill gaps when others are out.
Both clients and caregivers appreciate clear, early communication.
Strategy 5: Turn Q4 Planning into Q1 Growth
Use December’s slowdown to prepare for next year.
Use Downtime Wisely:
- Update policies, refine onboarding, and improve caregiver training.
- Plan January campaigns like “We Help Reduce Readmissions”—a strong hospital re-engagement message.
- Analyze when you were short on caregivers last year and start recruiting early.
- Set aside emergency reserves—but aim to avoid needing them through proactive revenue building.
Month-by-Month Game Plan
October: Build the Foundation
- Finalize holiday staffing and backup plans
- Begin proactive client communication
- Recruit seasonal caregivers
- Ensure reserve funds are ready
November: Execute & Appreciate
- Confirm every Thanksgiving week shift
- Call caregivers to confirm availability
- Launch staff appreciation efforts
- Send “Gratitude Tree” leave-behinds and Veteran’s Day pins
- Host caregiver appreciation events
December: Monitor & Communicate
- Review daily schedules and fill gaps fast
- Check on clients who paused services
- Recognize caregivers weekly
- Begin re-engagement calls for January services
The Takeaway
December’s dip isn’t avoidable—but it’s manageable.
By planning early, doubling down on relationships, and motivating your team, your agency can turn a seasonal slowdown into a strategic setup for Q1 growth.
The agencies that thrive in winter are the ones who don’t wait until December to react.
They start in October—with a plan, a purpose, and a pipeline full of opportunity.
Want to go deeper?
Join our 12-Week Home Care Sales Training with Approved Senior Network®.
We’ll help you master in-person marketing, build referral systems, and keep your pipeline full all year long.
📅 Next start date: October 28
💬 Learn more at GoCarePro.com/growth
🧠 FAQ: Avoiding the December Home Care Revenue Dip
1. Why do home care agencies experience a revenue dip in December?
Most agencies see a 10–20% dip due to caregiver time-off, family visits, client hospitalizations, and seasonal mortality. These factors compound, reducing billable hours.
2. How can agencies prevent revenue loss during the holidays?
Plan ahead by front-loading billable hours in September–November, stabilizing caregiver schedules, confirming client needs, and accelerating new client onboarding.
3. Should marketing efforts continue during the holidays?
Yes. Many competitors pull back, so it’s easier to reach referral sources. Host lunch-and-learns, deliver seasonal leave-behinds, and ask clients for Google reviews.
4. What’s the best way to motivate caregivers in Q4?
Offer holiday shift raffles, bonuses, or gift cards. Recognize staff through newsletters, appreciation events, and drawings to retain caregivers and prevent call-offs.
5. How can agencies use December downtime strategically?
Use slower weeks to improve onboarding, caregiver training, and marketing materials. Prepare January “reduce readmissions” campaigns to launch Q1 strong.
