Less than a month before election day, the Democratic and Republican candidates for president are dueling over home-based care plans.

Vice President Kamala Harris announced on “The View” this week a proposal that would allow home care to be administered through traditional Medicare.

On the same day, former President Donald Trump and his campaign released a rebuttal, pointing toward home care-related policy implemented from 2017-2020, plus additional plans for a potential second term.

Harris’ proposal is a more lofty one. It would also – if implemented – create a massive tailwind for home care providers across the country. But, as LeadingAge President and CEO Katie Smith Sloan pointed out after the proposal, “we cannot overstate that without staff, there is no care.”

Trump, meanwhile, pointed to expanded supplemental benefits in Medicare Advantage (MA) as a way for seniors to access more home care-related services. His campaign team also focused on economic points that it believes will make aging in place easier for Americans under his leadership.

In this exclusive, members-only HHCN+ Update, I make the mistake of venturing into the presidential candidates’ plans for home-based care. Specifically, I examine how viable the plans are, and what they could mean for providers, if implemented.

Home-based care takes center stage

Home-based care providers were likely pulling their hair out over the predictable confusion that arose from Harris’ proposal Tuesday.

Home health care is already a robust benefit provided under the Medicare program, and generally includes services delivered to seniors after an acute health event.

Home care is not currently available under traditional Medicare, however, and generally includes non-medical services to help with activities of daily living.

The only place where home care is paid for under Medicare is through MA supplemental benefits, and MA pays for just a sliver of all home care provided currently.

So, yes, Harris’ proposal would be groundbreaking, if implemented. It would completely change the scope of the Medicare program.

As for the companies it would directly impact, pick a notable name in home care.

Currently, home care providers have a large addressable market: seniors with the ability to pay out of pocket for home care services; Medicaid beneficiaries in need of home- and community-based services (HCBS); veterans in need of home care, paid for through Veterans Affairs (VA); and a small portion of MA beneficiaries and long-term care insurance clients.

If home care were paid for by Medicare in the future, that would take the concept of “unlimited demand” to a new level. There are over 30,000 home care agencies in the country, almost all of which would have a new market opportunity if Medicare became another means to pay for home care.

The one potential downfall for providers would be former private-pay home care clients being able to use Medicare to pay for services. Private-pay home care doesn’t come without challenges, but it remains one of the most profitable forms of home-based care business.

Home health providers – which already provide care to Medicare beneficiaries, almost exclusively – would also see a business boon. Many of them already provide home care, and the ability to care for clients through one revenue source in both service lines would be massively beneficial.

After all, home-based care is responsible for one of the only successful Center for Medicare and Medicaid Innovation (CMMI) demonstrations of late. The Home Health Value-Based Purchasing (HHVBP) Model – now implemented nationwide – has already saved Medicare billions, and is likely to save many more billions moving forward.

“We think access to personal care services could at least double from six million customers today. By our estimate, the extra spending would expand the [total addressable market] by ~30% to $110 billion per year,” Macquarie Capital wrote in an analyst note this week. “Since Medicare covers home-based medical services, we expect a wider adoption of the integrated care model following added personal care services coverage. This could also expedite the transition to value-based care. Providers could benefit from aligned incentives, streamlined operations and cost synergies.”

Then comes the question of viability, however.

Harris is not the first person to propose such an idea. Home care stakeholders have suggested it for years, but so have other policymakers.

“When the Affordable Care Act was passed, a component similar to this was included and that ultimately was stripped out,” Tyler Giesting, a director of health care and life sciences at West Monroe, told me this week. “I think we’ve seen it fail in the past for reasons that come down to: can it be economically viable? The challenge would be getting something like this passed, in the way that it has been described so far.”

The Harris campaign has suggested that it would pay for the proposal, in part, by cutting Medicare payments for drugs. It estimated that the proposal would cost around $40 billion per year.

But other estimates suggest that it would cost closer to $400 billion.

Harris sees the proposal as a way to aid the “sandwich generation” – adults that have aging parents to take care of, as well as children. Those responsibilities make it tough to maintain employment.

For Harris, the key would be to convince the right stakeholders of the overall value of home care. It wouldn’t be enough to just prove that more Americans could continue contributing to the economy if they had additional help at home for their older relatives.

Harris’ team would need to instead pitch this as a long-term cost savings project. If more seniors had access to home care, less seniors would be driving up U.S. health care costs in hospitals, emergency rooms and more costly brick-and-mortar facilities.

That is already a battle home care providers face. They are regularly trying to convince payers that more home care equals less overall cost. But a concrete plan, and concrete evidence of those potential savings, would have to be laid out.

“It’s one thing to have this idealistic proposal perspective, and it’s another to actually put it into action with a detailed plan,” Giesting said. “Then, there’s also getting it passed and put into law.”

A detailed plan is key. Even if we accept the idea that more access to home care could ease burden on Americans, while also keeping overall health care costs down, the implementation of the proposal through Medicare would need to be tirelessly thought out.

For instance, New York’s Consumer Directed Personal Assistance Program (CDPAP) – which allows family members to be paid to care for loved ones in need of home care – has been a fiscal disaster for the state.

Self-directed care has potential. It allows unpaid caregivers to be compensated, and for home care recipients to direct their own care. But it’s also hard to oversee.

For what it’s worth, if the proposal did move forward, I think the best way to go about it would be to prioritize care from existing, quality home care agencies. Agencies that train and vet their caregivers, ones that have been providing care professionally for a long time.

Trump proposals

The Trump campaign’s home care proposals are more understated. And, like Harris’ plans, more details would be needed to project true impact – for potential home care beneficiaries and providers.

“President Trump will prioritize home care benefits by shifting resources back to at-home senior care, overturning disincentives that lead to care worker shortages and supporting unpaid family caregivers through tax credits and reduced red tape,” the Trump campaign wrote in a release, in preparation for Harris’ announcement this week.

The campaign also evoked MA supplemental benefits. MA supplemental benefits – through the primarily health related pathway and the Special Supplemental Benefits for the Chronically Ill (SSBCI) pathway – were created during Trump’s presidential term.

The benefit that allows for home care services is dubbed In-Home Support Services (IHSS). MA plans have pulled back on offering IHSS in 2024, however.

“The Trump administration provided new Medicare Advantage supplemental benefits that included modifications to help keep seniors safe in their homes, respite care for caregivers, transportation coverage, additional in-home support services and assistance and non-opioid pain management alternatives,” the release continued.

The campaign also pointed out other indirect factors that have led to home care inaccessibility of late, such as inflation, which it believes it can continue to bring down.

Spotlight and policy

Home-based care being in the nationwide spotlight is a good thing for providers and older Americans.

But it’s also worth taking stock of where that spotlight has gotten us before. The Biden-Administration has been laser-focused on home care, but mostly HCBS through Medicaid.

Meanwhile, home health providers have been left behind. Advocates are in the throes of a three-year long fight against continued rate cuts from the Centers for Medicare & Medicaid Services (CMS), as other home-based care proposals are taking shape from both campaigns.

Home health providers are seeing their traditional Medicare payments cut, while also receiving payments from MA plans that often don’t cover the cost of care. All the while, MA penetration continues.

In April of 2023, I wrote about why federal support for home-based care is missing the mark.

While proposals from both campaigns this week contain some good elements, that fact remains true.

As home-based care takes center stage once again, Medicare-certified home health providers are forced to stand behind the curtains, at a time when their margins are evaporating.

“I would also want to remind the Biden, Harris administration that the existing Medicare home health program is under assault currently, and has been since 2020, with billions of dollars in cuts that have diminished access to care, so I think that investment and a stabilization of the existing Medicare home health benefit is something that is also needed,” Partnership for Quality Home Healthcare CEO Joanne Cunningham told HHCN this week. “With this news, I would just offer that recommendation and reminder.”

The post With The Election Nearing, Candidates Battle Over Home-Based Care appeared first on Home Health Care News.

Mental and physical health are vital components of overall wellbeing and can influence each other in many ways. Yet, individuals with mental health conditions may encounter challenges in accessing adequate health care, which can impede their ability to manage their physical health. Home health care providers, however, are increasingly stepping in to bridge this gap.

In-home behavioral health care provides specialized support to promote mental wellness for individuals with a wide range of behavioral or psychiatric disorders. Those who qualify may be experiencing depression, anxiety, agoraphobia, difficulties associated with aging in place, struggles with substance use or problems coping with trauma. Mental health at-home support aims to improve these patients’ access to quality care.

“Untreated mental illness or behavioral health issues can significantly increase the risk of worsening mental conditions, the progression of chronic medical conditions, and the development of heart disease, stroke, dementia and a weakened immune response,” Barbara Andazola, vice president of clinical practice, strategy and programs at Amedisys (Nasdaq: AMED), told Home Health Care News.

Amedisys, headquartered in Baton Rouge, Louisiana, provides home health care, hospice, palliative and high-acuity care in 38 states.

“Most adult patients receiving home health services have a chronic or life-altering illness that can affect their mental wellness, which is crucial for how they think, feel, cope, make health-related decisions and determine how they will participate in their care,” Andazola continued. “Providing person-centered care and achieving quality clinical outcomes is impossible without addressing patients’ mental wellness needs, especially in home health, where clinicians directly observe the impact of mental and physical health on a patient.”

Many home health providers see behavioral health as a natural extension of their mission to help seniors successfully age in place.

At the same time, as value-based care measures become more prominent, making sure seniors are as mentally fit as possible also becomes more important from a business perspective.

“Behavioral health care is a crucial offering for home health providers because it allows for continuity of care across lifespan and settings, especially for individuals with dual diagnoses or developmental disabilities,” Dallas Star, regional director for Bayada Home Health Care, told HHCN. “Home health providers can leverage their expertise in home-based care to deliver specialized behavioral health therapies such as applied behavioral analysis (ABA) in the comfort of the client’s home. This personalized approach can help clients generalize skills and improve the overall quality of life.”

Bayada provides home health, home care and hospice services in 23 states, as well as in Canada, Germany, India, Ireland, New Zealand, South Korea and the U.K.

Psychiatric registered nurses (RNs) usually provide services for this patient population, sometimes with the aid of a licensed clinical social worker.

Those with Medicaid or a limited income may qualify for in-home behavioral health care at no cost. Most providers will work with clients to seek approval and evaluate needs to determine coverage available through insurance providers.

To initiate services, clients must speak with their physician or mental health professional who can provide a referral and work with the home health care provider to develop a personalized care plan. The duration of care depends on individual needs and goals.

Psychiatric nurses conduct an initial assessment and collaborate with the physician to develop an individualized care plan. The nursing services outlined in the care plan typically include evaluating, teaching and administering medications; managing situational crises; conducting self-harm assessments; teaching self-care and promoting mental and physical wellbeing; providing supportive counseling and delivering psychotherapeutic interventions such as education on disease processes, symptom management, safety, coping skills and problem-solving.

If a patient needs additional services or a different level of care, home health clinicians, with the approval of the patient’s physician, will coordinate with local community resources to ensure the patient receives the necessary services to remain safely at home. If this is not feasible, they will arrange to transfer care to an appropriate outpatient or inpatient facility.

“Similar to patients receiving other types of in-home services, those receiving behavioral health care are satisfied with their outcomes and appreciate the ability to receive care in the comfort and safety of their own homes,” Andazola said.

States mobilize crisis intervention teams to further address access to care

The Centers for Medicare & Medicaid Services (CMS) recently approved New Hampshire’s Medicaid State Plan Amendment for community-based mobile crisis intervention teams to provide services for people experiencing a mental health or substance use disorder crisis.

New Hampshire can now connect Medicaid-eligible individuals in crisis to a behavioral health provider 24 hours a day, 365 days a year. This approval marks 20 states and the District of Columbia that have expanded access to community-based mental health and substance use services under a new Medicaid option created by the Biden-Harris American Rescue Plan.

Mobile crisis intervention teams provides screening and evaluation; stabilization and de-escalation; and coordination with and referrals to health, social and other services, as needed. This helps states better integrate behavioral health services into their Medicaid programs.

Providing fast, appropriate care to someone in crisis may reduce the need for costly inpatient services, and this new option will help states expand access to behavioral health professionals as the initial contact for someone in crisis. New Hampshire can now receive Medicaid funding for mobile crisis response crisis planning, directly connecting people to specialized services, referring ongoing supports, and follow-up check-ins for individuals experiencing a mental health or substance use disorder crisis.

Though home health providers often have behavioral health capabilities – and sometimes even specific service lines for that care – there are still barriers to implementation.

“There is a clear need for ongoing behavioral health services as a standard offering for home health patients,” Andazola said. “However, the shortage of psychiatric-trained RNs and the specific experience requirements set by Medicare for reimbursement limit the expansion of these services. The Medicare home health benefit excludes occupational therapy (OT) as a qualifying clinician discipline. Despite OTs being highly skilled and capable of addressing functional limitations often experienced by behavioral health patients due to mental illness or cognitive deficits, they can only provide these services if the patient’s condition also requires skilled nursing physical or speech therapy. Until CMS addresses these and other requirements, expanding behavioral health services for home health patients will remain limited.”

The post Why Behavioral Health Care Became Table Stakes For Amedisys, Bayada appeared first on Home Health Care News.

Home-based care providers and Program of All-Inclusive Care for the Elderly (PACE) organizations are in a unique position to strengthen the work one another is doing to care for seniors.

No one understands this better than Alivia Care, a home-based care provider that also has PACE programs under its umbrella. In 2021, Alivia Care opened up Jacksonville, Florida-based The PACE Place.

“We thought No. 1, it related to the type of care that we gave, in terms of chronic elderness, geriatric frailty, many of the things that we see in our hospice patients, so we felt that we had some core competencies there,” Alivia Care CEO Susan Ponder-Stansel told Home Health Care News. “One of the things that we also wanted to do is just practice being responsible for the total cost of care, over a longer period of time.”

Jacksonville, Florida-based Alivia Care provides home health care, hospice care, personal care, palliative care, advanced care planning and PACE services across Northern Florida and Southern Georgia. Currently, The PACE Place serves roughly 150 seniors.

Ponder-Stansel has seen opportunities to bring in its home health resources to benefit the seniors who are receiving care through the company’s PACE program.

“We found that it was actually better to work with our home health agency, especially for things like wound care,” she said. “Home health [clinicians] have certain skill sets that most are very good at, things like wound care or cardiac rehab or diabetic education, some of those things that we would see in our PACE population. Some PACE providers just do it all themselves, so it depends on what works for them, but we felt this was a better way.”

In addition to this, Alivia Care utilizes its personal care staff to offer transportation escorts for medical appointments to seniors receiving PACE services through The PACE Place. These caregivers are also providing support in the home, delivering housekeeping services and help with chores.

On the other end, the company has been able to bring PACE services into the home.

“Not every PACE participant will come into your day center every day,” Ponder-Stansel said. “There are times when people just don’t feel well. We’ve been able to do occupational therapy, physical therapy, and bring that to the home for them. Because PACE is the payer for this, you don’t have to necessarily go through all the hoops of the OASIS. You can just contract with your home health to provide it.”

Referral-based partnerships

One Senior Care is a PACE organization that has formed referral-based partnerships with home-based care providers.

“Oftentimes it’s those home health companies that really know and see the conditions that the patients are living in, and really have a good understanding of the complexity of these patients,” Craig Worland, chief operating officer at One Senior Care, told HHCN. “They’re the ones who realize that the patient may need more, and they actually can be a referral source for us.” 

Erie, Pennsylvania-based One Senior Care is the top PACE provider for rural and Appalachian communities.

Similar to Alivia Care’s The Place Place, One Senior Care also brings its home-based care partners into the home of PACE participants that need additional support.

“There are definitely times where there’s a skilled need that we don’t have at a center within our staff, or there is something that a patient needs just due to how complex they are that we are not equipped to provide,” Worland said. “We work with the home-based care company to provide that.”

The biggest value-add of these partnerships is being able to offer an additional level of care through working with home-based primary care and home health providers, according to Worland.

“That to me is really the sweet spot for these partnerships, it’s allowing us to meet our goal, which is keeping the participant at home, that could be anything from wound care to infusion [services],” he said.

Despite PACE and home-based care providers being natural allies, Worland believes that the latter are sometimes reluctant to collaborate with the former.

“Sometimes home-based care companies view PACE as a competitor, and they almost have an aversion to working together, or an aversion to using PACE as a resource for their really sick patients,” he said. “I think what I’d love to see is just more of that collaboration.”

For Alivia Care, the internal partnership between its home-based care arm and its PACE program has meant leaning into each segment’s strengths, as opposed to taking everything on.

This doesn’t mean the collaboration is completely free from challenges.

“Coordination and communication is something that is sometimes challenging, and you have to build in mechanisms for hearing from those who are providing the care in the home, and then having them coordinate with your interdisciplinary care team to manage that care and make sure you’re responding to anything that’s going on, and planning adequately,” Ponder-Stansel said. “There’s a higher degree of communication than you would normally see with a Medicare patient.”

Worland also stressed the importance of strong communication within these partnerships.

Ultimately, he wants home-based care providers to understand the mutual benefits that come from teaming up.

“The onus is on the PACE plan to explain that and spell that out, but as patients continue to get sicker, get more complex and their care needs become more challenging, I really want these home care companies to be thinking about PACE as a partner,” Worland said.

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The biggest retailers were zealous in their pursuit of home-based health care initiatives. But there’s little evidence to suggest that pursuit has been successful, at least thus far.

This week, CVS Health (NYSE: CVS) announced that it was laying off 2,900 workers. Simultaneously, reports surfaced of Glenview Capital – a significant shareholder in the company – emerging as an activist investor.

Reuters then reported that CVS Health is exploring a potential breakup of its business. CVS Health has multiple segments, including retail, pharmacy, insurance through Aetna and health care services.

Health care services is where the company took a stab at home-based health care for the first time. In addition to acquiring the community- and senior-focused primary care provider Oak Street Health for over $10 billion last year, it also acquired the home-focused value-based care platform Signify Health for $8 billion.

“CVS’ management team and Board of Directors are continually exploring ways to create shareholder value,” a CVS spokesperson told Reuters. “We remain focused on driving performance and delivering high quality healthcare products and services enabled by our unmatched scale and integrated model.”

For payers, investors and retailers alike, home-based care looked like a worthwhile frontier to explore during the pandemic. For retailers like CVS Health and Walgreens Boots Alliance (Nasdaq: WBA) specifically, their success administering the COVID-19 vaccine to Americans gave them hope that community-based health care would be a somewhat smooth path forward.

That has not been the case, for Walgreens, CVS Health, or a slew of others.

In this week’s exclusive, members-only HHCN+ Update, I revisit the plight of retailers delving into home-based care, and consider who will be the beneficiaries of health care moving to the home.

Support in the home

The overarching idea is simple. The United States has an aging population, and more seniors than ever want to receive their health care in the home.

Plus, home-based health care tends to be cheaper than facility-based care. Traditional personal care services enable seniors to age in place and prevent further health problems related to activities of daily living struggles. Home health care ensures smooth transitions home from the hospital, keeping patients out of more costly brick-and-mortar settings.

Other home-based care is becoming popular too. Home-based care for younger Americans. Skilled nursing facility care in the home (SNF at Home). Hospital-at-home care. Primary care at home. Oncology care at home. Kidney care at home. In-home health assessments and evaluations.

Broadly, these types of care are more consumer-focused, a departure from the care that forced Americans to uproot their lives for a day, week or even months to receive the health care they needed.

For the sake of designation, I refer to Medicare-certified home health care and personal care services – through Medicaid, private pay or the VA – as “traditional” home-based care services.

As more non-traditional at-home care has proliferated, there was some sense of concern from traditional providers that more cash-strapped entities could disrupt two long standing industries.

That still could be the case, as home health and home care providers tend to be – on average – behind the curve on technology and future-facing business practices.

But in the last quarter of 2024, that disruption doesn’t seem any closer than it did in 2019.

Walmart (NYSE: WMT), which wanted to “support people aging in their homes,” has largely ditched its health care services plan. Amazon launched Amazon Care – which had an at-home care component – and then did away with it shortly thereafter. Best Buy (NYSE: BBY) is still mostly smooth sailing, but it intended from the start to be a technology partner more than anything.

Then there’s CVS Health and Walgreens, which both made massive bets – strategically and monetarily – on health care services.

Both began to shrink their retail footprints, hoping to become more health care providers than corner stores.

Walgreens invested over $6 billion in VillageMD, another home- and community-focused primary care provider. It also acquired CareCentrix, a post-acute technology company. An affiliate of the company was also a significant backer of BrightSpring Health Services (Nasdaq: BTSG), one of the largest home-based care providers in the country.

But then, earlier this year, CEO Tim Wentworth announced that the company would be undergoing a “strategic review of its assets.”

“We are now meaningfully looking at the entire portfolio of assets that we have to ensure that everything we have is going to drive the growth that we aspire to deliver,” he said at the time.

The company shuttered 160 VillageMD locations after aggressively expanding in years prior.

The investment firm KKR also acquired Walgreens’ remaining shares in BrightSpring.

Both CVS and Walgreens have had multiple leaders look over their health care divisions over a short period of time.

While CVS owns Oak Street Health and Signify Health – a similar portfolio to Walgreens’ backing of VillageMD and CareCentrix – it also purchased Aetna for $70 billion back in 2018.

Aetna’s leader was also recently ousted by CVS Health.

While Glenview Capital – the rumored activist investor – said it was not pushing for a breakup of the company, other news outlets reported that CVS’ board has already discussed that option.

Not long ago, CVS Health was considered a potential buyer for some of the remaining standalone home health companies. It had an obvious interest in home-based care, and also owned Aetna. Humana Inc. (NYSE: HUM) and UnitedHealth Group (NYSE: UNH), two of Aetna’s top competitors, own home health assets of their own.

“I think, over time, we’ll look at what other assets [we need],” CVS Health CEO Karen Lynch said in 2023. “As you think longer-term, around the corner, there might be additional opportunities in the home.”

Now that idea appears to be off the table.

Walgreens and CVS Health both wanted to become health care services players, and they are. Thus far, though, they’ve stumbled. They are not yet successful players, nor successful home-based care players.

What it all means

Legacy home-based care providers love the industries they’re in, and they know there’s plenty of future opportunity.

But they also know all the challenges that come along with reaching that opportunity: staffing woes; the delicate intimacy of providing care in the home; turbulent payment environments; and the barriers to growth and scale.

There are over 10,000 home health agencies in the U.S., while there are more than 30,000 home care agencies, according to best estimates.

Consolidation has been projected for more than a decade, but has never come in a significant way.

Payers like Humana and UnitedHealth Group own two of the largest home health companies in the country in CenterWell Home Health and LHC Group. But that still only grants them access to a small slice of the home health pie.

For instance, after UnitedHealth Group acquired LHC Group, it then agreed to purchase Amedisys Inc. (Nasdaq: AMED), another one of the top home health providers. But even with both agencies under its belt, the company will likely have less than 10% of market share in the industry.

There is more startup activity in home health care and home care than ever. A couple of those businesses may have a shot at disrupting.

But, for now, the large health care companies taking a shot at home-based care have failed to make waves.

That could be because of their size, or because of the complexities that come with delivering good home-based care.

Either way, for now, most of the opportunity that lies ahead still remains for the taking. And the legacy operators have as good of a chance as anyone to capitalize.

The post Health Care Giants Are Falling Short Of Home-Based Care Disruption appeared first on Home Health Care News.

Electronic Visit Verification (EVV) was established as law in 2016 under the 21st Century Cures Act to address fraud and abuse in home-based care delivery. The law provides federal guidelines, but individual states can determine which service codes are included. However, years after nationwide implementation, EVV still remains a burden for home care providers.

Simply put, EVV confirms the details of in-home visits. It holds caregivers accountable for their schedules, ensuring that their work is completed on time and in its entirety. Typically, caregivers work within a mobile app to conduct the EVV process. The app sends the necessary information from their devices to their agency’s home care software.

Six data points are captured at the point of care to verify the facts of a home care visit in real time.

Collecting this basic information in home care settings helps providers and states ensure that authorized care is provided and that caregivers deliver the proper care at the right time. When this verified visit data is collected and analyzed, states can use it to help identify and reduce Medicaid fraud, which drains resources from the system and hinders care delivery to those in need.

There was initial confusion because the act required states to implement EVV for at-home visits conducted by Medicaid personal care providers and home health agencies. However, each group had different go-live dates. Medicaid-funded personal care services were required to comply with EVV statutes by Jan. 1, 2020, and home health agencies by Jan. 1, 2023. However, delays and exemptions made compliance anything but simple.

Further, the federal government has passed legislation regarding EVV, but its implementation varies at the state level. States are categorized as “open” or “closed” models. Home health agencies have the freedom to choose their EVV provider in open states, while in closed states, they must work with a vendor selected by the state.

According to Matt Kroll, practice president of Assistive Care & Assistive Care State Programs at Bayada Home Health Care, despite challenges, Bayada has found that EVV helps prevent false claims.

“It allows us to monitor caregivers in real-time, verify service delivery, and allow for faster issue resolution,” he told Home Health Care News. “For example, if a check-in is late or a caregiver indicates that the client is showing signs of a larger issue, we can see that in real time and detect and prevent adverse events before they lead to a larger medical issue or hospitalization.”

Headquartered in Moorestown, New Jersey, Bayada provides in-home clinical care and support services in 21 states and five countries.

“We believe that we will be able to leverage some care documentation data points to help improve the quality of care we provide our clients and, over time, industry-wide data points may improve the industry as a whole,” Kroll said.

Kroll explained that Bayada supports efforts to prevent fraud, waste and abuse, with the caveat that overregulation can actually hurt the industry in some instances.

“We do feel that overburdensome requirements and unfunded mandates can deter agencies from providing Medicaid-based services, which is detrimental to those populations who already struggle to access the care they need to stay safely at home,” he said.

EVV still a pain point for providers

Because EVV varies by state, its challenges differ by market.

“EVV is still a pain point for providers for various reasons – and they vary by state,” Tim Nyberg, senior vice president of strategy at Sandata, told HHCN. “These can include variance in education from states to providers, the provider’s experience in onboarding and implementing EVV systems, how caregivers are educated on EVV, and whether they understand its purpose and benefits.”

Sandata, based in Port Washington, New York, provides agency management software, systems, and services to optimize billing and claims processing and streamline administrative processes.

“Additionally, some caregivers cite privacy issues in using their personal cell phones to clock in and out of shifts and having their location tracked,” Nyberg said. “Some clients and family members share those same concerns.”

Although all states have worked to implement effective EVV programs, some have needed help with clear and open communication regarding their policies, transparent enforcement timelines and timely responses to questions and concerns from the provider community.

“EVV continues to present challenges for providers primarily due to its complex integration into existing workflows,” John Atkinson, chief technology officer at AxisCare, told HHCN. “The additional effort required is not just about submitting claims, but also ensuring that EVV data is accurately collected and transmitted to the aggregator. This process requires meticulous attention to detail, often adding layers of administrative tasks to an already burdened system. Providers must balance maintaining the quality of care and adapting to new technological requirements, often leading to frustrations. While EVV aims to streamline and enhance transparency, the transition and implementation phase continues to be arduous.”

Founded in 2013, AxisCare is a full-service home care software company based in Waco, Texas.

“Bayada has made every effort to ensure that the transition to EVV compliance is as easy as possible for our caregivers and as least disruptive to client care as possible,” Kroll said. “However, pain points persist. Most notably, cost, lack of standardization across states, technology issues for caregivers and lack of cell service in rural areas.”

Providers who fail to comply with Medicaid rules risk not being paid for their work. Non-compliance with Medicaid rules and policies may also result in the provider’s inability to do business under the Medicaid program.

Apart from the stricter compliance issues, there are also significant downstream impacts. When caregivers fail to clock in at a client’s home, the home care agency cannot verify the services provided, especially in the case of a fall or hospitalization during or after a shift.

There is a continued lack of clarity regarding the consequences of non-compliance, according to Kroll.

States and payers each have a compliance threshold that needs to be met, and most – but not all – states have published this information. Non-compliance could result in payment penalties, loss of referrals, audits, and additional penalties and corrective action plans.

The future of EVV

States that have a burdensome EVV system run the risk of losing providers that may be otherwise interested in conducting business there.

“Looking ahead, the future of EVV will be marked by increasingly stringent standards and tighter tolerances,” Atkinson said. “We anticipate a future where the manual entry of EVV data will become largely unacceptable as states demand greater accuracy and efficiency.”

He emphasized the importance of proactively creating a culture of compliance and ensuring that staff are well-prepared to meet changing standards. This includes adopting technology and simplifying processes to enable smooth data transfer to aggregators.

“By staying ahead of these developments, providers can enhance operational efficiency and continue to meet regulatory requirements effectively,” Atkinson said. “Above all, EVV will enhance the accurate delivery of care to seniors, ensuring they receive the attention and services they need when needed.”

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The home-based care staffing environment will always be a challenge for providers, but things look far better now than they did two years ago in the wake of the pandemic. However, one area that remains a lingering problem for providers is nurses, and specifically nurses who are leveraging a worker shortage to maximize earning power. 

A confluence of factors made recruiting and retaining home-based care workers from 2020 to the beginning of 2023 a major headache.

Increased government aid kept a large amount of workers on the sidelines, for extended periods of time. Meanwhile, many clinical professionals either retired or exited the industry after being burnt out by pandemic-related pressure.

Most of that has abated, but home health providers have told me that one issue definitively remains, and that’s bringing on – and hanging onto – nurses.

“If I had 200 nurses show up in my parking lot, I would hire them all without interviewing them,” Bill English, president and CEO of Accurate Home Care, told me in jest at the Continuum conference last year.

English’s joke was layered with some truth, however. Home health providers are desperate for nurses, and affordable ones. Without them, it’s tough to grow – or in some cases, to even survive.

In May of 2023, Adam Holton – then the chief people officer at Amedisys (Nasdaq: AMED) – told me that nurses jumping ship to collect sign-on bonuses was one of the company’s gravest concerns.

He and many other leaders hoped that particular issue would subside as the public health emergency was put further into the rearview, but recent conversations I’ve had suggest that it hasn’t.

In this week’s exclusive, members-only HHCN+ Update, I take a closer look at one of the most pressing issues facing the home health industry, which is a widespread inability to sustainably hang onto a vital workforce.

Home health care’s nursing problem

In May 2023, when I chatted with Holton, Amedisys had some of the best data on home-based care workers in the industry. Its applicant tracking system, specifically, was one of the company tools he was touting.

And that’s also why he was so sure of this problem with home health nurses, or nurses in general.

“When there’s a severe shortage, you expect some of this,” Holton said. “But there’s ample evidence that there is still a contingent of nurses who are really taking advantage of going from one sign-on bonus to another.”

Jeff Knapp, the chief people officer at Bayada, was also a part of that conversation. He agreed, and called Bayada’s nursing woes not a sourcing issue, but a retention issue.

For certain, there are ways to keep the less financially inclined nurses onboard. Those include good company culture, solid training, proper recognition, bonuses and, in general, competitive compensation.

But the average home health provider doesn’t have time to waste and money to blow. And when they are hiring nurses who then turn around and leave in short order, that amounts to a significant financial loss. The recruiting and training costs add up, with little return on investment.

In April 2022, an analysis in Health Affairs showed that the total supply of registered nurses decreased by more than 100,000 from 2020 to 2021, which was the largest decrease in supply in the last 40 years.

Another analysis, published by the Health Resources and Services Administration in November 2022, projected a U.S. shortage of close to 80,000 nurses in 2025, a problem that’s expected to continue – and even exacerbate – throughout the decade.

Specifically within home health care, a study published in the National Library of Medicine in 2021 found over 30% of full-time registered nurses and about 25% of licensed practical nurses left their position in a large home health care agency “over the course of a year.”

To make matters worse, health systems – which compete with home health agencies for nurses – often have more financial resources. At the same time, skilled nursing facilities (SNFs) are soon to be subject to a minimum staffing mandate, which could also increase competition over a small pool of nurses.

And the issue Holton brought to my attention nearly a year and a half ago hasn’t gone away.

For instance, in Care Advantage’s case, nurses are actually declining sign-on bonuses that may tie them to the company for a longer period of time. They’re doing that, in many cases, so they can eventually jump ship for other offers.

“All the big companies are paying high retention bonuses and sign-on bonuses,” Joe Navarro, the chief people officer at Care Advantage, told me this week during Home Health Care News’ Staffing Summit. “It’s to the point that, when I’m interviewing and hiring nurses, when I offer a sign-on bonus, they say they don’t need one. Because they want to be able to jump three months from now, four months from now, for better compensation.”

For large home health providers, that’s an issue. For smaller providers, it’s hard to even enter the competition.

Care Advantage has a large regional presence. Still, nurses jumping ship has become one of its biggest challenges.

“It’s very hard to attract and retain nurses at this point,” Navarro said. “And I think that’s one of the biggest challenges that there is in the industry.”

A costly turnover problem is also magnified in light of the current payment environment in home health care.

It costs far more now to hire and retain a nurse, but all the while, the Centers for Medicare & Medicaid Services (CMS) is reducing home health payment. The agency has cut core payments the past two years, and proposed a third straight cut for 2025.

On the other side of payment, Medicare Advantage (MA) plans are often paying rates for home health care that fall below the cost of care.

Navarro suggested one solution, which was to ensure nurses fall in love with the company culture shortly after joining.

Home health providers could also employ strategies to get a better sense of which nurses are more likely to stay for the long haul.

Having a nurse on staff is better than not having him or her on staff. But if that nurse is set to leave fewer than 90 days in, the economics on that hire could turn upside down.

The post The Home Health Nursing Problem That Isn’t Going Away appeared first on Home Health Care News.

Hospital at Home (HaH) is a sustainable, innovative and next-generation health care model. From the physician’s perspective, it offers person-centered medical care and keeps patients out of the hospital, away from possible complications and on to better outcomes. However, there are still plenty of challenges for providers to work through.

“People love to have inpatient or acute level care in the comfort of their own home,” Dr. Adam Groff, co-founder of Maribel Health, told Home Health Care News. “The data suggests that for populations studied in multiple areas, [HaH] is a safe service with high-quality care, low readmission rates, low escalation rates, low infection rates and, bottom line, patients love it.”

Maribel Health, based in Hanover, New Hampshire, designs, builds and operates advanced clinical care models in the home and community to expand health system capacity and improve patient access.

While it seems like a win for patients and caregivers, the model has seen growing pains.

“One challenge is clarifying the distinction between HaH care and other in-home health care services like home health or skilled nursing facility (SNF) care,” Heather O’Sullivan, president of Mass General Brigham Home Hospital, told HHCN. 

Based in Boston, Mass General Brigham Home Hospital provides comprehensive home-based care, including chronic, urgent and acute care, directly to patients in their homes.

The structure and implementation of HaH care vary depending on the hospital’s needs, capacity and patient population. Some organizations run the program out of the emergency department and admit eligible patients to their homes. In contrast, others rely on community paramedics or specialty clinics to refer patients to the program.

“While the use of paramedics in health care is not new, the pandemic accelerated the scaling of this workforce to support home-based acute care,” O’Sullivan said. “By incorporating paramedics into the HaH model, we address workforce shortages while enabling health care professionals to practice at the full scope of their licensure. This expansion not only meets the complex needs of our patients, but also ensures that we are using our workforce to its optimal potential.”

The HaH model was introduced at Johns Hopkins in 1995 and was used to manage and treat older patients who refused hospital stays or were at higher risk of hospital-acquired infections.

Early trials of the model found the total cost of at-home care was 32% less than traditional hospital care, the length of stay was one-third shorter and the incidence of complications was dramatically lower.

“HaH can reduce hospital overcrowding and provide care that aligns with patient preferences,” O’Sullivan said. “As health care systems increasingly focus on strategic sustainability amidst a rapidly evolving health care ecosystem, scaling HaH presents a unique opportunity to meet growing patient demand while improving clinical outcomes and satisfaction.”

Though the structure of these programs varies, many commonalities exist. They are well-suited for medium-acuity patients needing hospital-level care, but stable enough for safe monitoring from their homes. They are also suitable for patients with conditions requiring defined treatment protocols, such as pneumonia, congestive heart failure, chronic obstructive pulmonary disease (COPD) or diabetes.

“One of the greatest advantages of this model is that it allows clinicians to enter patient’s homes, offering insights into social and environmental factors that may impact health – insights often missed in a traditional hospital setting,” O’Sullivan said. “This holistic view enables more tailored care.”

The Centers for Medicare & Medicaid Services (CMS) launched the Acute Hospital Care at Home waiver during the pandemic, which created a payment system for HaH through Medicare. Now, the model is popular enough that providers are operating within that waiver – which has been extended to the end of 2024 – but also outside of it.

Launching a program

Novant Health New Hanover Regional Medical Center in Wilmington, North Carolina, began enrolling patients in its HaH program in March. The program is in its early stages and is growing.

“To date, the Novant Health New Hanover Regional Medical Center (NH NHRMC) program has cared for approximately 70 acute patients in their home,” Christy Spivey, senior director of nursing, told HHCN. “Patient experience has been overwhelmingly positive, reaching satisfaction scores of 100%.”

According to Spivey, there have been no unexpected returns to the hospital, and readmission rates are either within or better than those of similar hospitalized patients. Based on the number of patients served at home, NH NHRMC has saved almost 300 in-hospital physical bed days, creating the capacity to keep higher acuity patients in those beds.

“Our health care providers have found great satisfaction in meeting the patient’s needs creatively, allowing the patient to heal in their home environment,” Spivey said. “Often, they find that providing health education is better received by the patient when they are at home. They can also include family members in the plan of care and education, which supports the patients. And the ease of access to the patient via technology makes it easy to see patients from wherever the provider is located.”

Spivey went on to say that patients benefit for many of the same reasons.

“First, they can heal in the comfort of their home, with loved ones, and even pets,” she explained. “They can easily reach a [nurse] or physician by touching a button on a screen if they have a question. Specially trained community paramedics and a physical therapist come to their homes to administer care and therapies, where the approach is tailored to their unique needs.”

Core tenets of the Novant Health program support optimal nighttime sleep, medically ordered meals, and optimized mobility, all tailored to the patient’s unique needs. Pharmacists, case managers, and other care team members can also visit the patient virtually to teach and support the patient’s care plan.

According to Spivey, nationally reported outcomes consistently show patients in these programs have higher satisfaction and lower readmission rates than similar patients who receive care inside the hospital.

Overcoming challenges

To be eligible for the Acute Hospital Care at Home program, patients must meet clinical and social criteria established by CMS. The program has 78 approved diagnoses, including pneumonia, COPD and urinary tract infections.

On Sept. 18, the U.S. House Energy & Commerce Committee approved a bill extending necessary flexibilities to benefit telehealth and hospital-at-home providers.

The Telehealth Modernization Act of 2024 would grant two-year extensions to various telehealth flexibilities implemented during the COVID-19 pandemic. These include continued payment for virtually furnished care services, eliminating in-person or geographic requirements for telehealth providers and supporting audio-only telehealth. These flexibilities are set to expire at the end of this year.

The act would also extend the hospital-at-home waiver by an additional five years. Again, for now, the waiver program is expected to expire at year end.

While the HaH model offers numerous benefits, it also comes with challenges. Significant barriers and limitations exist, including payment reimbursement issues, physician and patient resistance, patient safety concerns and implementation hurdles.

“The single biggest challenge is the looming end of the CMS Hospital Care at Home waiver,” Dr. Stephen Dorner, chief clinical and innovation officer for Mass General Brigham Healthcare at Home, told HHCN. “We need congressional action to extend the waiver and maintain federal support for this incredible care delivery model.”

Regarding challenges to care delivery itself, Dorner said that all health care providers are working to overcome them.

“The first is culture change,” he said. “This is not how people are used to providing or receiving acute hospital-level care, and it takes a lot of time and effort to educate and facilitate buy-in. Then, once people understand the phenomenal quality benefits associated with HaH care and agree to undertake it, the logistical challenges of delivering that care take hold. Orchestrating the complexities of home-based acute care delivery – staff, supplies, patients, equipment, medications, food – can be daunting. Finally, there is a burgeoning market for solutions to these challenges that is waiting on certainty from federal regulators that the waiver will remain in place before activating.”

Most private payers do not cover hospital-level care in the home. Hospitals have had some success with Medicare Advantage (MA) plans and Veteran Affairs (VA), but health systems with insurance plans have a similar opportunity to cover HaH care.

“It’s important for providers to write and call their senators and representatives to let them know they want their support for the continuation of the Acute Hospital Care at Home Waiver,” Dorner said. “When you look at the traditional health care landscape, the growing demand for access, and the ever-longer wait times for care, it’s clear that the status quo is unsustainable. We need new solutions to deliver better care, and HaH is our greatest promise to realize a better future in care delivery.”

The benefits of HaH for patients

Nancy Foster, vice president for quality and patient safety at the American Hospital Association (AHA), told HHCN that she believes people would be surprised at the costs of HaH programs, and the overall benefits.

“We’ve looked at various studies,” she said. “They are comparable to the brick-and-mortar hospital, partly because we use staff time differently. We have staff traveling to the patient and so forth. We need technologies that you might not have to use in the hospital, but that assist with bi-directional communication. So, there are different costs, but the totals are similar.”

Dr. Ronald Paulus, co-founder of Maribel Health, agreed and provided more background.

“The literature is pretty clear that when your emergency department is congested, there’s significant harm that accrues to patients, including excess mortality,” Paulus told HHCN. “So, anything that improves the throughput of my emergency department and inpatient floors is a good thing from a safety perspective. But it is also good from an economic perspective. If you look at how HaH has been studied, it’s been shown to reduce direct costs by just under 40%. It’s at least 20 times more capital efficient, and when the program is run effectively, it can generate double digit EBIDTA margins.”

Standing up a HaH program requires logistical and technical work, which requires time, staff and budget. Some hospitals have partnered with companies that can provide the technology, manage logistics or provide care coordination to facilitate the implementation of a HaH program.

According to O’Sullivan, to support the growth of this model, organizations must continue to focus on expanding the health care workforce and address gaps in education.

“This includes initiatives like industry and academic partnerships to create new career opportunities for students and the innovative use of a broad professional team in the home hospital model,” she said. “We are working closely with educational institutions to address gaps in standardized curricula, ensuring that the future health care workforce is well-prepared to meet the new and undefined demands of this growing model.”

Before the pandemic, there was skepticism that the quality of care provided at home would be as good as in the hospital. This could be changing. As patients are reluctant to go to the hospital and telehealth capacity is growing, HaH care is becoming a more desirable option for providers and patients.

“Growth can be achieved by demonstrating the success of HaH models, advocating for legislative support and continuing to innovate in care delivery,” O’Sullivan said. “At Mass General Brigham, we’ve reached 70 beds in our Home Hospital program. Our pilot program has evolved into a core service, delivering high-quality, patient-centered care at home. Research has consistently shown that patients and caregivers prefer this model due to its proven outcomes and an overall positive experience for all involved.”

Spivey said that overcoming barriers and limitations is an ongoing internal and external process, and that growth depends on the customer’s voice.

“As more people hear about the program, they ask their physicians if they can be included, which will provide more momentum,” she said. “We provide internal education and presentations to physicians, nurses and other team members. Case managers have worked to integrate screening processes into daily patient rounds. Screening protocols for the team have been honed to support more rapid identification of patients, including optimizing the electronic medical record to create patient lists based on inclusion criteria. Also, including family in the initial discussion about the program is critical. If the patient or family is uncomfortable with care in the home, they can decline participation. For those who consent to participate, it is clear that if they become uncomfortable while receiving care in the home, the team will work with them to address the issue or bring the patient back to the hospital, if necessary.”

Dorner said the most significant opportunities for HaH are better patient care, job satisfaction and value.

“We know that the quality of HaH exceeds traditional brick-and-mortar hospital care for the patients who can safely receive care at home,” he said. “We also know that clinicians who join HaH, either as part of a diversified traditional clinical portfolio or as their full-time job, report increased job satisfaction. Some of these clinicians, who otherwise would have left health care at the end of the pandemic, have found the clinical care of HaH to provide more fulfilling, deeper connections to patients, which is why many of us joined health care in the first place. All in all, there’s better value associated with HaH care, and delivering greater value at a greater scale presents a spectacular opportunity for health care across the United States.”

According to O’Sullivan, there is immense potential for health care system transformation using the HaH model.

“HaH can reduce hospital overcrowding and provide care that aligns with patient preferences. As health care systems increasingly focus on strategic sustainability amidst a rapidly evolving health care ecosystem, scaling HaH presents a unique opportunity to meet growing patient demand while improving clinical outcomes and satisfaction,” she said.

Dorner added that there’s a clear upside to investing in the growth of this care delivery model, given the long-term regulatory and financial certainty that will increase patient awareness of the HaH model’s benefits, as well as the hospital’s willingness to break out of the mold and do something innovative.

“Increasingly, we will see improvements to equipment becoming more modular, portable and interconnected,” he said. “We’ll see software solutions to care orchestration to make moving equipment and services across a broader geography seamless. Eventually, this will be the primary method of caring for many conditions that require hospitalization today, and society will greatly benefit from it.”

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BrightSpring Health Services completes Haven Hospice acquisition

BrightSpring Health Services (Nasdaq: BTSG) announced earlier this month that it has finalized its $60 million acquisition of the assets of North Central Hospice and Haven Medical Group, which collectively make up Haven Hospice.

The deal was first announced in June, and was finalized as of Sept. 1.

Importantly, the deal helps BrightSpring bolster its hospice footprint in Florida, which is a Certificate of Need (CON) state.

“We are excited to welcome Haven Hospice into BrightSpring, expanding our existing hospice services into the CON state of Florida,” BrightSpring President and CEO Jon Rousseau said in a statement. “The delivery of compassionate hospice care is critical for patients and their families, and we’re committed to delivering that to high-need Floridians. Our hospice services have been rated in the top five percent for quality in the industry, and with this expansion of services to Florida, we can provide high-quality care to more patients and their families during the most difficult time in their lives.”

BrightSpring, since going public earlier this year, has been an active acquirer. The Louisville, Kentucky-based company provides a wide range of home-based care services across all 50 states.

Compassus, OhioHealth finalize partnership

Compassus – one of the largest home health providers in the country – has finalized its partnership with OhioHealth.

Under the partnership, Compassus has acquired ownership interest in four home health locations and three hospice locations that were formerly led and managed by Ohio Health, which is a large nonprofit health system.

The partnership between the two will be dubbed OhioHealth at Home in partnership with Compassus. It was originally announced in June.

“We are excited to officially launch OhioHealth at Home in partnership with Compassus, bringing high-quality, patient-centered home health and hospice care to our communities,” Compassus CEO Mike Asselta said in a statement. “Our coordination with the community and OhioHealth hospitals in Marion, central Ohio Lexington and Athens will ensure patients receive seamless, comprehensive care right in the comfort of their homes.”

Compassus provides home health, home infusion, palliative, hospice and home care services across 30 states.

One of its main growth drivers over the years has been joint ventures and partnerships with large, regional health systems like OhioHealth.

Agape Care Group bolsters hospice footprint in four states

Agape Care Group, which is a portfolio company of Ridgemont Equity Partners, has acquired Crossroads Hospice locations in Oklahoma, Missouri, Kansas and Georgia.

Based in Spartanburg, South Carolina, Agape provides home-based hospice and palliative care services. Its family of brands already provided care across South Carolina, Alabama, Georgia, North Carolina, Kansas, Louisiana, Missouri, Oklahoma and Virginia.

Crossroads Hospice will continue operating independently in Tennessee, Ohio and Pennsylvania.

“The addition of Crossroads Hospice solidifies our decision to expand into the Kansas, Missouri and Oklahoma markets, where we have spent more than a year building the infrastructure to support this acquisition,” Agape Care Group CEO Troy Yarborough said in a statement. “We welcome the talented team members from Crossroads and look forward to focusing on care delivery and better serving patients in the Kansas City, St. Louis, Lenexa, Warrensburg, Oklahoma City and Atlanta markets.”

Advanced Home Health Care acquires Mobile Nursing Services

Advanced Home Health Care earlier this month announced that it has agreed to acquire Mobile Nursing Services, a home health provider based in Fort Madison, Iowa.

Based in Burlington, Iowa, Advanced Home Health Care provides services across the Southeastern part of the state.

“The acquisition allows Advanced Home Health to consolidate resources and provide the high-level of services both Advanced Home Health and Mobile Nursing customers rely upon to stay at home,” according to local news reports.

Advanced Home Health provides a variety of services in the home, including home care, home health care and pediatric care.

Cardinal Health to buy Integrated Oncology Network for $1.1 billion

Cardinal Health (NYSE: CAH) announced last week that it has agreed to acquire Integrated Oncology Network (ION), which is a physician-led independent oncology network. The deal is worth $1.115 billion.

Based in Dublin, Ohio, Cardinal Health is one of the largest health care companies in the country. Of late, it has significantly expanded its At-Home Solutions business. Now, it is diving deeper into oncology, which has also shifted further toward home- and community-based settings in recent years.

ION has more than 50 locations across the country. It provides “a complete and integrated continuum of care,” including diagnostic testing, radiation oncology, medical oncology, urology and other ancillary services.

As part of the transaction, ION will become part of Navista, Cardinal Health’s oncology practice alliance.

“Driving growth in specialty continues to be a top priority, and we’ve made investments to expand our offerings through both Navista and our acquisition of Specialty Networks,” Cardinal Health CEO Jason Hollar said in a statement. “With their proven model providing extensive support of community oncology across the cancer care continuum and healthcare ecosystem, we’re confident Integrated Oncology Network will further accelerate our oncology strategy and enable us to create value for providers and patients.”

Part of ION’s business model is “meeting patients where they are.”

“Integrated Oncology Network and Cardinal Health share a mission of helping community oncology practices deliver world-class patient care and a world-class patient experience to patients and families close to home,” ION CEO Barry Tanner said in a statement. “This partnership will give community practices the tools and technology they need to enhance and grow that mission and make a positive impact on patient outcomes.”

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No one was more prepared to fill the top seat at CommonSpirit Health at Home than Trisha Crissman.

Crissman had served as interim president of CommonSpirit Health at Home since 2023, and last week, the company announced that she would take helm of the company as the official president and CEO.

In many ways, Crissman has had a front row seat to the evolution of CommonSpirit Health. She has been with the organization since early 2015.

Crissman served as vice president and chief operating officer for home health and hospice at CHI Health at Home, a former iteration of the company.

CommonSpirit Health at Home is headquartered in Milford, Ohio. It offers specialized home care, home infusion, hospice and medical transportation services nationwide. CommonSpirit Health at Home operates 83 locations across 13 states. The company serves as the home-based care arm of health system CommonSpirit Health. 

As a veteran of the organization, Crissman was immediately prepared to get the ball rolling on CommonSpirit Health at Home’s strategic priorities, which include becoming a dynamic and future-facing home-based care partner and provider.

Crissman recently caught up with Home Health Care News to discuss that topic and much more, including her other role at the National Alliance for Care at Home.

HHCN: You stepped into the role of CEO at CommonSpirit Health at Home very recently. As CEO, what are your priorities, specifically within home-based care?

Crissman: Although this has been a role that I’ve been kind of serving in jointly – as the chief operating officer – for about 15 months, I’m excited to be in this new role.

As the largest Catholic home-based services provider in the country, and as a national service line for the larger CommonSpirit Health organization, our priorities are and will always be intimately tied to the needs of our larger organization, as well as the joint venture partnerships that we support in our communities. This really translates to honing in on strategies that serve our partner hospitals as they continue to look for any and all ways to create bed capacity to care for more patients in the community, who are in need of acute care and intervention. That means driving reduced length of stay through earlier discharge home, ED diversion tactics and SNF-at-home — those are just some of the solutions that support our partners. These strategic solutions, as well as others, will continue to be a focus for health at home well into the future.

Alongside this is also the need for health at home to continue to focus on creating clinical capacity internally, in order for us to be able to care for the increased demand of patients being discharged out of these partners’ hospitals, as well as ensuring that CommonSpirit Health at Home is the employer of choice in our communities.

This means making sure that we’re offering competitive compensation and an opportunity for our employees to work within an organization that’s committed to serving humanity, in what I believe is this very noble and sacred way, and to find a strong sense of purpose and belonging in doing so. In other words, continuing to drive high levels of engagement with our employees by connecting them deeply to our culture. This is, and will remain, a top priority. It is the bedrock for any other strategic priorities that we’re embracing. We have to get that right if we’re going to do anything else successfully.

How does being a long-time member of CommonSpirit’s leadership team prepare you to take the helm as CEO?

Aligning our ministries as one CommonSpirit took place in early 2019, so I’ve had the fortunate opportunity to be a part of that early five-year work of assimilating these very large organizations culturally. From a strategic planning standpoint, I’ve gotten to know local leadership in the markets, as well as the newly formed executive leadership team at CommonSpirit Health, under the leadership of Wright Lassiter III, who has been in his role for a little over two years now.

I really feel like the last five years have been an immersion into the visioning and the creation of the organization that we are still becoming as CommonSpirit Health. There’s been significant effort around really prioritizing what it is that the larger organization needs to do to be successful … the focus on organic growth and leveraging our size with payers and with vendors, and creating this customer-focused patient experience, digital branding. Some of those top priorities I’ve been able to be a part of from the very beginning, and engage health at home, vertically and horizontally, in the right places, with the right leaders, to make sure that we can be the best supportive partner in our markets across the enterprise.

From just a high level, I would say, I feel very fortunate and well-prepared relationally and from a connectivity standpoint, to take this expanded role further.

As a new CEO, is there a program, pilot, or type of partnership that you’re hoping to implement, or go after, that hasn’t been done at CommonSpirit Health at Home?

We’re constantly looking at the right partnerships, particularly with regional health care systems, because this is kind of in our acumen. It’s what we’re evolved to be really good at, and it helps us diversify our portfolio over time as well.

But I would say, there’s still an opportunity to evaluate the needs of what I would call the expanding ecosystem for post-acute care that I’ve referred to in various conversations as kind of this proverbial jump ball. As the need for care in the home is expanded, and pushed out of an acute setting, and into the home, the right ecosystem needs to be there in order to ensure that it’s successful. Whether that’s medical house calls or personal care or behavioral health or laboratory services. There’s a wide variety of services that will be required in the home, that in some ways are there now, but have yet to be really defined, I think, solidly.

I don’t necessarily think that CommonSpirit Health at Home would be looking to buy or build those capabilities, but looking at how we could create strategic partnerships to be able to provide those services, to further expand the care in the home ecosystem, so that those patients can be discharged sooner, or possibly maybe even avoid a hospitalization.

We’re looking at what those right strategic partnerships might look like for CommonSpirit Health at Home well into the future, and certainly our ability to be agile and respond to what those increasing needs are.

JV partnerships have been important for the company. What types of companies are you looking to partner with in the future?

We benefit greatly from partnering with really strong regional health systems, and our most recent JV with Parkview Health is a really great example of that.

It’s not uncommon for health systems to kind of evolve and diversify their portfolio over time to meet the needs of the patients that they’re serving, especially as more care is being transitioned from facility-based settings to the home.

Oftentimes, I think that partnerships with the right organization, like CommonSpirit Health at Home, can provide the required scale and focus, expertise, leadership, tools and resources that are vital to successfully managing and expanding non-acute operations like home health and hospice.

We benefit from the partnerships because we can leverage the perspective, the cultures and the best-in-class practices that those organizations bring into the relationship, and as a result, we become a stronger, more versatile, well-rounded organization. Most importantly, when we partner with regional health systems, we wind up finding pretty amazing leaders to join our team, and that expands our collective acumen and capabilities. We evolve and grow together, and we’re better together as a result of our joint ventures. The partnerships that we form are, it’s worth mentioning, some of the best-performing entities and locations across our platform, and the reason is that we have mutually agreed upon commitments to ensure that we achieve the goals of the agency, and that we align the strategies that are of our business plan.

It’s not just CommonSpirit Health at Home as a managing partner, it’s the partnership as an entity with key stakeholders within the health system that can help us be successful, make introductions, and help us strategize and problem solve. Then everyone wins.

Aside from CommonSpirit, you also serve on the board of the NAHC-NHPCO National Alliance for Care at Home. Can you talk a little bit about this?

This has been the evolution of several years of really, really deep trench work with key leaders across the industry.

I feel so honored and privileged to be a part of it from its grassroots beginning, and our leaders have been really thoughtful around crafting the right organization to lead this industry forward, and really intent on our mission and values. We’ve spent a significant amount of time searching for leadership, and we’re excited that that was just recently announced.

I think that the hard work now begins. This new board will begin the hard work of making sure that there is no stone unturned that needs our attention in our industry, for not just home health, hospice, or palliative care, but all care that could be provided in the home. It’s a very exciting time, and I have learned an immense amount from amazing leaders that I have walked alongside through this process. I feel really humbled and privileged to be a part of the important work shaping our future.

The post CommonSpirit Health at Home’s New CEO On Winning The ‘Proverbial Jump Ball’ In Home-Based Care appeared first on Home Health Care News.

It’s the interest rate, stupid.

Home health, home care and hospice industry voices – including myself – have regularly pointed toward internal factors affecting M&A over the last two and a half years. In the end, the overarching, main headwind was always the extremely high interest rates that were put forth by the Federal Reserve to combat inflation.

Those internal factors had an effect on the specific M&A that did occur, and they will have a major effect on the M&A activity that occurs moving forward.

But searching for internal reasons to find out why M&A had cooled since early 2022 was largely a fool’s errand.

In March of 2022, the Fed started moving historically low interest rates up a notch. Specifically, on March 17, 2022, the federal interest rate moved from near-zero to 0.50%. Then, those hikes continued on a consistent basis, up until July 26, 2023, when the federal interest rate hit 5.50%. 

On Wednesday, the Fed announced a half-percentage point cut to the interest rate, in what is expected to be the first of a few cuts as it now turns its eyes toward other problems outside of inflation.

Meanwhile, the trend line for home-based care M&A ran diametrically opposed to the interest rates. As interest rates rose, home-based care M&A fell, besides a few small spikes in a quarter or two.

“I believe the interest rate environment has really been more significant than perhaps people have acknowledged,” Les Levinson, partner and co-chair of the Transactional Health Law Group at Robinson + Cole, told me this week on a webinar. “When you were doing deals in 2021 and 2022 – at what was functionally equivalent to a zero interest rate environment – you needed a lot less equity to do a deal. And the risk in that transaction was being basically covered by debt coverage. That evaporated as interest rates shot up.”

In this week’s exclusive, HHCN+ Update, I’ll dive into the interest rate cut and what it will mean for the home-based care M&A market in the near-term future.

Rate cut kickstart

All signs point to Wednesday’s rate cut being the first of a few, as the Fed begins to focus more on unemployment and less on inflation.

Based on the last couple of years, that would suggest that we’ll see far more transactions in home-based care in the near-term future.

After that first hike in March 2022, things changed in the formerly robust M&A landscape.

In Q3 and Q4 of 2020 alone, there were 95 total transactions in home health, home care and hospice, according to the M&A firm Mertz Taggart. Over the same time period in 2021, there were 106 transactions.

Then, in 2022, after the first rate cut, Q3 and Q4 saw 50 total transactions, an over 50% decrease compared to the year prior.

Outside of a few quarters with modest spikes, M&A has stayed historically down, up until present day.

Private equity-sponsored deal counts, too, were historically low.

Now that the interest rate trend line is on the other side of the mountain, expect home-based care activity – and PE-backed activity – to pick up.

“We’re at the tail end of an almost five-year cycle that started with COVID and the Fed stimulating the economy,” Mertz Taggart Managing Partner Cory Mertz told me on the webinar. “Interest rates went to about zero. Sellers were burned out. They wanted to get out early before the election and a new administration increased the capital gains tax rate. It was really a perfect storm of activity, and it was, quite frankly, a bubble. The Fed raised fund rates at a pretty healthy clip starting in 2022, and that really slowed everything down for a couple of years. But now, we’re starting to see signs of life.”

The Fed was expected to lower rates Wednesday, and most were waiting to see whether it was by a quarter or half of a percentage. Its decision to go the latter route will open things up even further than previously expected.

Over the next year or two, it’s likely the rate will continue to tick down toward around 3%.

During the quiet period, demand for quality home-based care assets has not been down, according to Mertz. Instead, the market conditions have kept transaction levels down. Those market conditions also include the fact that, with near-zero interest rates and a rush toward home-based care during the pandemic, multiples climbed significantly.

Since then, buyers have waited for the multiple expectations to normalize.

“These same buyers have still been hungry for quality deals,” Mertz said. “They don’t want to, and they’re not willing to, pay a premium for deals that don’t warrant a premium [price]. Now, premiums today compared to premiums in 2021 or 2022 are down a little bit, but not a whole lot. For a quality agency, at least. That’s my experience.”

As multiple expectations are balanced out, though, it’s likely that demand finally rises up and brings deals to fruition.

But active, quality home health agencies – in particular – have become more scarce over the last few years.

“A quality home health asset, I think, is the premium in post-acute care,” Choice Health at Home CEO David Jackson told me on the webinar. “Hospices have a really nice base. Home care [agencies] have really steady valuations, much more steady than the others. They don’t go up and down as much as a premium home health care asset that is doing well from a compliance, quality and financial perspective. Those are becoming more and more rare every day, and that’s because it’s a very difficult industry.”

Based in Tyler, Texas, Choice Health at Home provides a wide range of services in the home, including home health care, home care and hospice. Backed by Coltala Holdings and Trive Capital, the company has executed over 20 transactions in the last four years. In addition to Texas, it has a presence in Nevada, Utah, Colorado, Arizona, Oklahoma and Kansas.

In home health care, buyers generally prefer executing deals in the back half of the year anyway, and particularly in Q4. That’s because, after the Centers for Medicare & Medicaid Services (CMS) releases the final home health rule in October or November, there’s generally more certainty around payment.

A lot has changed

While deals have been put on ice, a lot has changed under the surface.

As buyers and sellers get back to the table, they’ll be discussing home-based care sectors that don’t look like they did three to four years ago.

In home health care, CMS has proposed three cuts to payment, and finalized two. More than 50% of Medicare beneficiaries are now underneath a Medicare Advantage (MA) plan, too. MA plans tend to be far less for home health services than traditional Medicare.

Home health providers – even the quality ones – are struggling to adjust to a world with a less certain payer landscape. They are dealing with CMS cuts to traditional Medicare, while also vying for higher rates from MA plans. Some have even cut ties with MA plans to prove a point, and also to allocate their resources to better payers.

In home care, the finalized Medicaid Access Rule included the 80-20 provision, which would mandate that 80% of reimbursement for home- and community-based services (HCBS) go to workers. That provision won’t be implemented for another nearly six years, but it is still likely to affect M&A.

For instance, on one end, many providers believe that scale is necessary to sustain business performance under such a provision. Addus Homecare Corp. (Nasdaq: ADUS) has stated this regularly and has also been a very active acquirer of late.

Outside parties, however, may see the provision as a reason to avoid HCBS – for now.

Addus has also benefited from the M&A downturn itself. While interest rates have been high, Addus has significantly expanded its home health and home care footprints.

“Realistically, over the last 12 to 18 months, we’ve not seen a lot of competition out there,” Addus CEO Dirk Allison recently said. “There’s been the occasional smaller strategic player that’s bought a few deals on a localized basis. From a PE standpoint, it’s really been very slow as far as competition for the last bit. Now, obviously, if rates come down in September, as everybody’s expecting, there’ll be a point where PE will come back in and that’s fine. It’s been a market in which up until the last year or so, we’ve always operated with competition from those folks.”

VitalCaring President Luke James also told me earlier this year that there were advantages to growing during an M&A and payment downturn. His company also recently agreed to acquire divested assets of Amedisys (Nasdaq: AMED), but that deal is contingent on the Optum-Amedisys deal closing first.

Either way, if the Fed continues on the path it set out on this week, times are changing.

When M&A ticks back up, buyers will have different factors to consider. But the buyers – the formerly dormant strategics and private equity players – will be back.

The home health and home care sectors have been labeled as ripe for consolidation over the last decade. But consolidation has not come as quickly as many believed it would.

Now that the dust is settling, however, M&A has the chance – again – to reshape the face of home-based care.

The post ‘Signs Of Life’: With Interest Rates Ticking Downward, Home-Based Care M&A Is Looking Up appeared first on Home Health Care News.