More on health care reform and home health

As the Senate continues to debate health care reform, I received an e-mail with a link to this blog post.  The post's author, Keith Myers, is CEO of a home health company.  He makes several valid points about how health care reform will impact home health.  

I find his point about the impact of the home health cuts on hospitals and other institutions interesting.  As you may recall, the prognosis for hospitals and other facilities under the current version of health care reform is not good.  (Even according to CMS' own accountants.)  If you add into that prognosis more patients who would otherwise be cared for at home, but can't be due to lack of available home health agencies, you place the hospitals and other facilities in an even worse situation. This compounds the access problem.

Not to mention, as I have stated before and Mr. Myers points out, you are reducing care provided in a cost effective manner and replacing it with less cost effective care.  It seems to me that if patients who would have been cared for at home are forced into institutions due to lack of access, Medicare spending will grow more than it would if that same patient population were cared for in the home health setting. Not to mention how many senior citizens and disabled individuals will end up being institutionalized that might have otherwise stayed at home.

Mr. Myers makes another point about home health care - in the midst of a shrinking economy, home health care has been growing and creating jobs.  This growth is projected to continue for several years. This is because of an aging population that would prefer to remain at home rather than be institutionalized.  Providers were recognizing this need and filling it.  They were often struggling, but they were able to provide the care and stay in business.  

Unfortunately, at the same time Congress is cutting home health agencies already narrow margins, they are also implementing mandates that will increase the cost of each employee.  This will reduce these significantly narrow margins even further.  This is not a prescription to keep these providers in business.    Many home health and home care providers have already begun trying to calculate who the various mandate provisions will impact their bottom lines.   What they are seeing is not very heartening. The bottom line is that the job growth My. Myers mentions is going to stop.  

This is a further indicator that access to home health care is likely to be reduced significantly after health care reform.  That is not a great prescription if you or a loved on is likely to need long term care.

Comments

[itil certification raleigh]

Is this true ?

Regards

[Robert Markette]

Yes. Unfortunately, this is true. There are several other posts on this blog regarding the impact of health care reform on home health.

Thanks for reading,

Bob

Robert W. Markette, Jr., CHC
Gilliland Markette LLP
3905 Vincennes Road, Suite 204
Indianapolis, Indiana 46268

Telephone: (317) 704-2400
Toll Free: (800) 894-1243
Fax: (317) 704-2410
Mailto: rmarkette@gillilandmarkette.com
http://www.gillilandmarkette.com
http://www.homecarelawblog.com

[tubal reversal]

very nice and and informative blog about health issues

[Robert Markette]

Thanks for the comment. I am glad you enjoy the blog.

Robert W. Markette, Jr., CHC
Gilliland Markette LLP
3905 Vincennes Road, Suite 204
Indianapolis, Indiana 46268

Telephone: (317) 704-2400
Toll Free: (800) 894-1243
Fax: (317) 704-2410
Mailto: rmarkette@gillilandmarkette.com
http://www.gillilandmarkette.com
http://www.homecarelawblog.com