Seeking stability in the Medicare home health benefit. Margins evaporate; agencies in financial jeopardy.
In a watershed moment for the home care industry, National Association for Home Care & Hospice (NAHC) staff has obtained, decoded, deciphered, and tabulated rates of return for all Medicare-participating agencies in the nation. The results show the average rate of return for Medicare agencies in the latest fiscal year--that is, before the October 2002 15 percent cut in home health reimbursements, before audits, and before partial episode payment adjustments--is 5.15 percent. That figure is well below the average 22 percent rate of return the Medicare Payment Advisory Commission alleged that home care agencies were making. Following is the text of NAHC's report, along with a letter from the respected firm of Muse & Associates vouching for the accuracy of NAHC's methodology.
D000368:Aged; D003365:Costs and Cost Analysis / Q000191:economics; D005375:Financial Audit; D006297:Health Services Accessibility / Q000191:economics; D006699:Home Care Services / Q000191:economics*; D006801:Humans; D007342:Insurance Benefits / Q000191:economics / Q000706:statistics & numerical data; D006278:Medicare / Q000191:economics* / Q000706:statistics & numerical data; D020406:Medicare Payment Advisory Commission; D015397:Program Evaluation; D011445:Prospective Payment System / Q000191:economics; D019035:Rural Health Services / Q000191:economics / Q000706:statistics & numerical data; D014481:United States