According to FEMA, as much as 60% of small businesses don’t recover from a disaster.
Why? Well, most small businesses aren’t aware of how damaging and costly a disaster can be.
And if you’re not aware of what all can happen, how can you prepare?
Today, we’re diving into how disasters can impact your agency, how paper systems can make recovery harder, and what you can do about it.
The Hidden Costs of Paper Systems in a Disaster
1. Reconstruction of Lost or Damaged Records: After a disaster, reconstructing paper records is a labor-intensive and often incomplete process.
Staff must manually recreate files by reaching out to clients, referring to any surviving documentation, or even guessing at what’s missing. This effort can be overwhelming and costly, both in time and additional labor.
2. Storage and Environmental Risks: Paper records are highly susceptible to physical damage.
Even if some records are recoverable, specialized restoration services—such as drying out waterlogged files or cleaning smoke-damaged documents—can come at a premium price.
3. Legal and Compliance Penalties: Losing client records due to a disaster can lead to significant legal ramifications. HCBS providers are required to maintain accurate records for compliance with state and federal regulations.
Failure to do so can result in hefty fines and potential lawsuits, not to mention the cost of increased audit scrutiny.
4. Service Disruption and Client Trust: When records are lost, service delivery can be interrupted. Clients may face delays in receiving care, which can damage your agency’s reputation and client relationships.
Rebuilding trust can take time and often comes with additional costs in terms of compensation or client management efforts.
A major unanticipated cost of recovering from a disaster is the cost of restoring records, such as billing records, when cash flow has stopped.
Preventing Disaster: The Case for Digital Records
The vulnerabilities of paper systems highlight the importance of transitioning to digital systems.
With digital service records, your records are stored securely in the cloud, backed up regularly, and accessible remotely.
This not only protects your agency in the event of a disaster but also allows for faster recovery, reducing downtime and preventing service disruptions.
By investing in digital solutions, you not only safeguard your agency from potential disaster but also improve your operational efficiency, helping you better serve your clients.