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
    migraine home remedies and-devices
    The Best Home Remedies for Migraines
    June 5, 2025
    learn to recognize and treat yeast infections
    Most Commonly Asked Questions About Yeast Infections
    November 17, 2021
    Advanced lung cancer diagnosis systems used by doctors
    Advanced Lung Cancer Diagnosis Systems Used by Doctors
    March 6, 2022
    Latest News
    5 Steps to a Promising Career as a Healthcare Administrator
    July 31, 2025
    Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
    July 20, 2025
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 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
    Image
    Boomer Voice
    June 12, 2013
    The Anatomy of Health Insurance [Infographic]
    April 19, 2012
    Patient Commando Features Canadian Women Changing Healthcare
    August 23, 2013
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: An Economic Primer on Care Delivery at Home
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 > An Economic Primer on Care Delivery at Home
Home Health

An Economic Primer on Care Delivery at Home

Travis Haynes
Travis Haynes
Share
5 Min Read
SHARE

Patient’s homes are becoming an increasingly important aspect of the continuum of care.  It is not difficult to understand this trend when analyzing the benefits of home care delivery to payers and patients.  Some of the key elements driving the increased focus on care delivery at home include the following:

Patient’s homes are becoming an increasingly important aspect of the continuum of care.  It is not difficult to understand this trend when analyzing the benefits of home care delivery to payers and patients.  Some of the key elements driving the increased focus on care delivery at home include the following:

  • Earlier patient discharges that transition the recuperation period outside of an institutional setting;
  • Increased focus on lower readmission rates;
  • Increased demand for lower cost delivery models that deliver superior patient outcomes; and
  • The need for payers and providers to enhance patient and caregiver satisfaction.

The potential cost savings to payers from care provided at home compared to an institutional setting has been well documented.  According to CMS, it costs $50 per day to create an in-home hospital room compared to $1,500 per day for in-patient hospital care.  In June of 2012, Health Affairs magazine reported on cost savings realized from a program at Presbyterian Healthcare Services in New Mexico that allowed its acutely ill patients to be treated at home.  Since its inception, this program decreased patients’ costs by 19% when compared to patients with similar illnesses who were admitted to the hospital.  Furthermore, it has been estimated that over 70% of non-surgical and non-emergent treatment and care can be offered in the home setting.  While the savings opportunities to payers are large, there are also many benefits that can accrue to the patient.

Several studies show that patients have experienced better outcomes and a shorter healing period as a result of receiving care in the home where patient comfort and independence are optimized.  It is no surprise that 89% of individuals over the age of 50 want to receive medical services in their home.

More Read

ACO infographic
A Closer Look at Accountable Care Organizations [INFOGRAPHIC]
Of Cows, Milk, and Humans
National Adult Day Services Week (September 18-24)
Advanced Sun Protection Strategies for Seniors
HIPAA Basics For Licensed Health Care Professionals: Privacy, Security, and Breach Notification Rules

Despite the benefits, home care is still underutilized.  Health systems are incentivized to maximize reimbursement via acute and specialty utilization.  While they want to optimize the profitability of an in-patient visit, they are now beginning to realize that today’s model of care is unsustainable.  As Medicare begins to lower reimbursement to hospitals with high readmission rates, home health providers are uniquely positioned to add value by maintaining a high quality of care post-discharge.

As a result of the growing need, merger and acquisition activity around firms offering medical and non-medical home health, hospice care, home infusion therapy, and remote monitoring technology, should increase in the near future.  This is evidenced by a few recent transactions:

  • On November 16th, Emeritus Corporation closed its announced transaction with Nurse On Call, Inc., the largest Medicare-licensed home health care provider in Florida and one of the largest such providers in the nation.  Emeritus paid $102.5 million for 91% of the equity of Nurse on Call’s parent company.
  • In October, Levine Leichtman Capital Partners announced that it had partnered with management to complete an investment in Maryland based SH Franchising, LLC, (“Senior Helpers”).  Senior Helpers is a leading franchisor of private pay, professional in-home care for elderly individuals.  It operates in 39 states and has over 270 franchised locations.
  • In September, Gentiva Health Services announced it purchased the home health and hospice operations of Washington-based Family Home Care Corporation.  Family Home Care is one of the market leaders in home health and hospice services in Washington and Idaho.  Financial terms of the deal were not disclosed.

We’re predicting that as accountable care approaches broaden in popularity and providers are incentivized to reduce readmissions, home health care will grow too.

Let us know what you think.

Travis Haynes

Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

5 Steps to a Promising Career as a Healthcare Administrator
5 Steps to a Promising Career as a Healthcare Administrator
Health
July 31, 2025
holistic dental
Holistic Dentist Services Are Natural and Safe
Dental health Specialties
July 28, 2025
botox certification
Help Improve People’s Skin Health Via Botox Certification
Skin Specialties
July 22, 2025
Telemedicine Apps
Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
Health
July 20, 2025

You Might also Like

How Physician Offices Can Improve Patient Health Care

March 31, 2016

How Much Can We Demand of Consumer Connected Health?

May 5, 2014
home health agency
Home Health

10 Tips on Choosing the Right Home Health Agency

August 4, 2021
Home HealthWellness

How The Wrong Diet Can Affect Your Quality Of Life As A Model

January 28, 2020
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?