2012 Challenges for Home Health Agencies

Mar 22, 2012 8:34:45 AM / by ACHC

2012 will bring new challenges in home health. The pace of the baby boomers becoming Medicare eligible will stay constant at about 9,000 people turning 65 each day. Growth for existing agencies and new start-ups is inevitable.

As healthcare continues to shift from institutional settings to the home and reimbursement moves from episodic fee-for-service to capitated reimbursement, there will be increasing employment challenges. Additional professionals and paraprofessionals will be needed and competition for qualified candidates will be vigorous. Staffing agencies will also be busy requiring effective strategies to be in place in order to have sufficient manpower.

While year progresses, home health agencies will also feel stress with additional reductions in reimbursement from Medicare and changes in the prospective payment system (PPS).  When revenues dip and demand increases, efficient operations and cost containment are necessary for survival. Prudent managers will use the SWOT analysis and other tools to make adjustments by trimming unnecessary steps in business operations. Most of all, they should scrutinize each budget line item to ascertain what expense items can be reduced or eliminated.

Accreditation Commission for Health Care, Inc.


Topics: Home Health, LinkedIn


Written by ACHC

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