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
    healthcare cybersecurity
    4 Helpful Tips on How to Protect Your Medical Practice Against Cyber Attacks
    October 24, 2021
    Health Check Diagnosis Medical Condition Analysis Concept
    6 Health Woes With Online Remedies
    January 19, 2022
    Eight Things Men Should Know About the Male Menopause
    Eight Things Men Should Know About the Male Menopause
    April 24, 2022
    Latest News
    Health Benefits of Taking a Vacation to Reduce Your Stress
    September 27, 2023
    First Aid Training Enhancing Workplace Health and Safety
    September 25, 2023
    Beyond the Clinic: Medical Surveys Are a Roadmap to Passive Income for Doctors
    September 23, 2023
    5 Self-Care Habits to Help You Live an A+ Life
    September 21, 2023
  • 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
    come up with a HIPAA compliance plan
    What Every Business Needs To Know About HIPAA Compliance
    October 30, 2022
    The Department of Health and Human Services Makes Effort to Increase PCIP Rolls
    August 23, 2017
    Are There Differences in Medicare Spending Across States?
    September 9, 2017
    Latest News
    Job Seekers with Disabilities Should at Health Insurance Benefits
    September 12, 2023
    Reasons That Drug Prices Are Rising to Unsustainable Levels
    September 12, 2023
    How Revenue Lifecycle Management Helps Healthcare Providers to Optimize Business Operations
    September 6, 2023
    The Hidden Benefits of Practice Exams for Medical Professionals
    September 6, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Can Home Health Care Reduce Cost?
Share
Sign In
Notification Show More
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
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
Last updated: 2011/05/20 at 7:26 AM
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

Dietary Supplements: Give Your Health an Extra Boost

Massive Health Benefits of Using Reliable Carpet Cleaning Services
11 Interesting Health Benefits of Drinking Coffee Regularly
10 Tips on Choosing the Right Home Health Agency
Simple ways to put your health and emotional wellbeing first this month

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

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
JasonShafrin May 20, 2011
Share This Article
Facebook Twitter Copy Link Print
Share
Previous Article Doctors Reattach Leg Backwards On Purpose-Reconstructive Surgery for Cancer
Next Article Top Quotes of the Week

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

Andropause hormonal decline
The Benefits of TRT for Andropause and Hormonal Decline
Wellness September 28, 2023
Cancer Prevention
The Importance of Lipoma Examination in Cancer Prevention
Cancer September 28, 2023
dental implant
Cost Analysis of Dental Implants in Australia
Dental health September 28, 2023
View,Of,Niagara,Falls,In,Autumn
Health Benefits of Taking a Vacation to Reduce Your Stress
Health September 27, 2023

You Might also Like

Home HealthlifestyleWellness

Ways You Can Make Healthy Habits Stick

May 19, 2022
health benefits of coffee
Home HealthWellness

Need an Energy Boost? Here’s How You Can Get the Most Caffeine Out of Coffee

April 27, 2022
Home HealthlifestyleWellness

The Guide To Living Well 

February 2, 2022
vegan lifestyle or diet
Home HealthWellness

Live Healthier And Live Better

February 2, 2022
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US
© 2008-2023 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Lost your password?