Home Health Care Report: Innovate Or Die
Home Health is considered by many analysts to be a major are of growth in healthcare in the coming years. With the retiring Baby Boomer demanding more convenient, personalized and home based care options, Home Health Care is in an excellent position to capitalize on massive influx of new patients.
But with all the potential in the home care market there have been even more challenges. Fraudulent activity and substandard care have caused consumer trust in home health care to erode. In response to the fraud, regulatory agencies have added restrictions, cut reimbursement and doubled down on law enforcement. The punitive nature of this enforcement has stifled innovation and caused home health agencies to be overly cautious with new service delivery models.
The regulations surrounding insurance reform and the proliferation of Accountable Care Organizations have many independent small to medium-sized home care companies grasping at ways to grow census in a system becoming increasingly exclusive. The companies who fail to innovate and develop multiple revenue streams have been forced to close their doors while other are working to develop new service delivery models to meet the rising demand for home care services.
Some of that demand can be found in specialized services focusing on diagnoses that cause the most hospital readmissions. There is a push to reduce hospital readmissions under the new Accountable Care system that penalizes hospitals for return trips to the ER after a hospital stay. To accomplish this goal hospitals are partnering with Home Health Care companies to find new ways to treat patients who are at high risk for readmission.
These programs often include disease education, raising awareness of community resources and frequent visits from Home Care professionals to help with the transition. What is more, these programs are often reimbursed outside of the traditional Medicare system Home Care companies have become comfortable with.
Home Health Care programs that prove the ability to reduce health care cost are often funded by third-party insurance “carve-outs” or grants which fund healthcare innovation. Palliative Care, Care Transition and disease management programs are all examples of programs that are being funded by these sources.
The innovation game isn’t just for the large Home Care companies. A small to medium sized company can jump in if they have a solid structure that favors permanent over contract employees. A company who works almost entirely with contractor may find it difficult to control cost and quality in a newly developed program that could sudden operational changes. However companies who focus on permanent employees may find the cost of change easier to manage.
Home Care companies who are able to innovate in the new Accountable Care system would thrive in the years to come. More innovation can only serve to improve the greatest healthcare system in the world.
Questions about this post? Email AnthonyFischer@elderadvocacygroup.info