Homecare industry and its future with Medicaid reimbursements

July 28, 2023

by a professional from University of Michigan - Ann Arbor in Tampa, FL, USA

I'm curious to know other's perspectives on this topic. I seems to me that the need for Homecare will only continue to grow and that a sizable portion of the funding for this Homecare will come from Medicaid. The margins for providing Homecare services to these clients must be very thin given qualified labor shortages, upward pressure on wages and operating costs, and existing restrictions on Medicaid reimbursement,

How can one successfully operate and maintain a business providing Homecare services to Medicaid funded clients in the current market?

Reply by a searcher
from Duke University in Atlanta, GA, USA

I would consider the evolution of at-home care across patient populations with the emergence of hospital-at-home, SNF-at-home, and possibly more variations of acute homecare. While certain costs have risen, technologies and therapies for at-home care are advancing quickly and becoming more reliable, cheap alternatives to inpatient or ambulatory care models.

Reply by a searcher
from Virginia Polytechnic Institute and State University (Virginia Tech) in Blacksburg, VA, USA

NY has essentially regulated anyone but the largest providers out of existence, but it’s plenty attractive in some states. That being said, the federal government has proposed new regulations that will cap gross profit at 20%. We’re in the public’s comment phase. Should that come to pass, it would end Medicaid funded home care.

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