By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    benefits of using protein powder to build muscles
    Protein Powder for Muscle Mass: Everything You Need to Know
    December 12, 2021
    changes brought on by blockchain in healthcare
    Technology In The Healthcare Industry
    March 28, 2022
    What Does Core Body Temperature Say About Health?
    August 17, 2022
    Latest News
    7 Most Common Healthcare Accreditation Programs: Which Should You Use?
    August 20, 2025
    Hospital Pest Control and the Fight Against Superbugs
    August 20, 2025
    Hygiene Beyond The Clinic: Attention To Overlooked Non-Clinical Spaces
    August 13, 2025
    5 Steps to a Promising Career as a Healthcare Administrator
    August 3, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Do Electronic Health Records Reduce Malpractice Claims?
    February 2, 2013
    A Humble Opinion: Book Review
    May 3, 2015
    medicaid
    Paul Krugman: Stop Being an Embarrassment to the Profession
    March 7, 2013
    Latest News
    How Social Security Disability Shapes Access to Care and Everyday Health
    August 22, 2025
    How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
    August 22, 2025
    How One Fall Can Lead to a Long Road of Medical Complications
    August 22, 2025
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Can Home Health Care Reduce Cost?
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Wellness > Home Health > Can Home Health Care Reduce Cost?
Home Health

Can Home Health Care Reduce Cost?

JasonShafrin
JasonShafrin
Share
4 Min Read
SHARE

At one point, the answer may have been yes.  But today…

At one point, the answer may have been yes.  But today…

“Although the initial impetus for establishing home health care was charitable, the Metropolitan Life Insurance Company (MetLife) discovered that by providing home health care, it could prolong life while collecting premiums and abstaining from death benefit payments. Yet the model experienced a requisite shift in focus in the 1920s stemming from a decrease in contagious diseases coupled with the proliferation of chronic illnesses, such as heart disease, diabetes, and stroke (Buhler-Wilkerson, 2007). MetLife and other insurers found that providing more care did not improve outcomes and sought to limit visits and eliminate the type of personal services offered. Ultimately, MetLife discontinued home nursing services, determining it unprofitable (Buhler-Wilkerson, 2007).

The years following World War II witnessed an increase in chronic conditions that overwhelmed hospitals and institutions, which, in turn, renewed interest in home health as an alternative to institutional care (Benjamin, 1993). Still, the reductions in institutional care assumed to flow from home health care proved elusive to document, and it was difficult to identify the appropriate population requiring home health care.”

More Read

Smooth Transition: Reducing Senior Readmissions to Hospitals
The Presidential Medical Formula–Self Contained Medical Clinics in Your Home
Adapting to Millennials with Health Care Technology
3 Natural And Unique Health Options You See Today
Natural Alternatives to Vaginoplasty

The argument in favor of funding home health care for the chronically ill parallels the argument supporters of much more preventive care make.  They both state the home health care/preventive care is an investment that reduces costs in other settings, but both have little evidence to document these savings in most cases.

Additionally, it is hard to contain cost when providers have an incentive to manipulate the system to maximize profits.  For instance, there is evidence of significant levels of upcoding.  According to one study, “92% of the case-mix increase since the HH PPS began resulted from changes in coding practices and documenting existing conditions rather than increased service utilization or more resource-intensive patients.”   Further, “MedPAC has noted that therapy visits were the most important factor in the growth of home health episodes; growth trends directly reflected distortions associated with therapy payment thresholds.”  Another study found that the level of service provided to the patients did not vary significantly, underlining the point that home care agency services are not responding to variances in patient health but to the reimbursement system itself.  Further, VNAA finds that many home health agencies have engaged in fraudulent activities such as: billing Medicare for home care services not provided, inducing referral sources; encouraging patients to ask for unnecessary care; encouraging admissions of patients with the lowest care needs (including limiting or providing inadequate care to patients with lower payment potential), and billing for unnecessary services.

Further, regional variation home health agencies treatment patterns causes significant variation in the price of care.  For instance, average home health cost in North Dakota was $2,396 versus $7,761 in Nevada.

Overall, Medicare paid $16.9 billion for home health services in 2008.  These payments covered 117.8 visits: 55% for skilled nursing, 18% for home health aides, and 26% for therapy (physical, occupational, and speech-language), averaging $5,337 per episode).

Source:

  • Judy Goldberg Dey, Ph.D, Margaret Johnson, MBA William Pajerowski, Myra Tanamor, MPP, Alyson Ward, RN, MPH. Home Health Study Report: Literature Review. L&M Policy Research, LLC, HHSM-500-2010-00072C, January 11, 2001.
TAGGED:home health
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

engineer fitting prosthetic arm
How Social Security Disability Shapes Access to Care and Everyday Health
Health care
August 20, 2025
a woman explaining the document
How a DUI Lawyer Can Help When Your Future Health Feels Uncertain
Public Health
August 20, 2025
physiotherapist at work
How One Fall Can Lead to a Long Road of Medical Complications
Health care
August 20, 2025
Common Healthcare Accreditation Programs
7 Most Common Healthcare Accreditation Programs: Which Should You Use?
Health News
August 20, 2025

You Might also Like

Health careHome HealthPublic HealthWellness

Will the Foodie Movement Reduce Chronic Diseases With Millennials in the Future?

April 30, 2018
sprained ankle exercises
Home HealthWellness

Sprained Ankle Treatment: Rehab Exercises

October 5, 2013
vegan wellness hacks
FitnessHome HealthWellness

Crucial Hacks that Every Vegan Should Practice for Optimal Health

January 10, 2021

Sex Can Be Dangerous – Consistency is Key

June 16, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?