How Huge Agencies Choose a Vendor

Large home health agencies don't just buy software—they dissect it. With dedicated IT departments, compliance officers, legal teams, executive-level oversight, specialized product and project managers, and procurement professionals, they follow a meticulous 6-12 month playbook to minimize risk and maximize ROI.

However, most agencies don’t have these extensive resources—I know firsthand from my experience as a mid-sized agency owner.

Good news:

You can adapt this rigorous process without a big team or a huge budget. This step-by-step guide simplifies each phase, provides essential vendor questions, and includes a practical spreadsheet template (available upon request) to streamline your vendor evaluation. Think of it as your DIY toolkit.

As someone who's sat on both sides of the table—as an agency owner/operator with limited resources and now as a provider of AI-native documentation solutions—I've designed this guide to help smaller agencies level the playing field.

Phase 1: Build a List of the Contenders

Start broadly, then narrow your focus. Identify potential solutions by using Google or ChatGPT. A targeted prompt can streamline this step—try asking an AI bot something like: "Generate a ranked list of the top 10 AI-native software vendors for [the thing you're looking for] with [this particular quality]" This will give you a solid starting point. (You could even ask an AI to write the prompt for you)

Phase 2: Conduct Demos and Narrow the Field

Schedule product demos with relevant members of your team. Write down questions during the demo and address them at the end. Turning on your camera helps ensure transparency and accountability from vendors.

Internal evaluation questions:

• Do I trust the vendor?
  
• Do they genuinely understand home health?
  
• Have they operated or worked directly in our industry?
  
• Are they clear and competent communicators?
  
• Does their solution effectively solve our specific challenges?
  

Example questions for the vendor post-demo:

Product:

1. Can we see a live demo in a real-world setting?

Operations:

1. How is data integrated with our EMR?
2. What workflow changes will affect intake, nursing, QA, and coding?
3. Will custom EMR adjustments be necessary? If so, specify how.

Integration:

1. Can we access a sandbox environment?

Security:

1. How do you ensure data safety? (Data flow, deletion policies, audits)
2. Who owns the data, and how is our PHI used?

Pro tip for small agencies:

Record demos (with vendor permission) using free tools like Zoom for detailed review.

Phase 3: Deep Dive Evaluation

Narrow down to three vendors. Large agencies typically issue formal Requests for Information (RFIs) at this point. The RFI has dozens and dozens of questions that you haven't even thought of yet and all of them will help you narrow down the list. (For an RFI template you can modify for your own purposes — DM or email me.)

Clearly state response deadlines (15-30 days). Late submissions should raise red flags.

Evaluation criteria:

• Alignment with your specific needs.
  
• Technical capability and ease of EMR integration.
  
• Mature security posture and proven HIPAA and Medicare compliance
  
• Clear onboarding and training timelines.
  
• Customization potential.
  
• Future scalability and risk assessment.
  
• Demonstrable ROI (crucial given ongoing rate reductions by CMS).
  
• Compliance and legal assessments (you don’t want your new vendor to get you investigated for medicare fraud).
  

Simplify evaluations by uploading vendor responses into ChatGPT or another LLM for rapid analysis.

Phase 4: Pilot and Real-World Testing

Conduct a real-world pilot. Small agencies can negotiate short-term, low-commitment trials (e.g., 30-day trials or limited user tests). Think of it like test driving a car.

Pilot steps:

• Set clear KPIs (e.g., 50% reduction in documentation time, error rates under 3%).
• Get a BAA and short-term agreement in place to protect yourself legally.
  
• Choose 2-3 nurses or an entire branch to test the product with real patients; closely monitor their progress.
  
• Weekly feedback sessions to track issues and adjustments.
  
  

Examples of pre-pilot vendor questions:

Operations

1. What support/training is provided during the pilot?
2. How are discrepancies within the available evidence handled, such as when the referral contradicts a statement by the nurse?

Contingency

1. Are there downtime risks? What's the rollback plan?

Security

1. Can we review your security protocols and architecture?

Small agencies: Request vendor assistance for setup if IT resources are limited. Track progress informally using simple tools like spreadsheets.

Phase 5: Launch, Training, and Onboarding

After a successful pilot, transition to a full rollout:

• Contract review: Leverage affordable online legal services or local counsel for BAA and SLAs. Don't hesitate to negotiate terms.
  
• Training: Blend vendor-led training with internal guides and documentation.
  
• Phased rollout: Begin implementation with one team; expand gradually.
  
• Monitoring: Monthly reviews to ensure compliance and ongoing ROI.
  
• Contract terms: Avoid agreements longer than 12 months to maintain flexibility.
  
  

Example of questions to ask prior to launch:

Operations

1. Detail your training plans, materials, knowledge base access, and ongoing support.
2. Explain onboarding timelines and phased rollout options.

Security

1. What post-launch audits do you perform?

Integration

1. What access controls exist? Can we revoke access anytime? Do you support single sign-on (SSO)?

Small teams: Opt for concise virtual training sessions (1-hour modules).

The Bottom Line

You don't need massive resources to vet AI software effectively—just structured planning, patience, and targeted questions. This playbook empowers smaller home health agencies to select compliant, effective, and high-ROI tools confidently.

At Apricot, we've guided agencies of all sizes through this exact process. Our platform simplifies every step, ensuring rapid success and sustainable improvements in your operations. Want to see the difference firsthand? Contact us today—your nurses will thank you.