A mix of demographics and economics is expected to cause a huge increase in the demand for home health care services in the next 20 years, posing challenges for the industry as it works to meet patient needs.
According to one estimate, the number of people age 65 and over is expected to grow to 72 million by 2030 when that group will make up about one-fifth of the population, up from about 40 million in 2009.
By 2020, the Bureau of Labor Statistics expects a 70 percent increase in home health aides from 2010.
Experts says that while the number of customers will increase, the financial compensation for taking care of all those new patients, especially those who need the most care, is uncertain. Providers are worrying about decreasing Medicare reimbursement rates which they say put financial pressure on them.
Advocates of home health care allude to the irony of efforts to try to contain medical costs as the highest-cost care comes from a hospital stay: the more time a patient stays, the higher the bill. With home health care, the idea is to discharge the patient to the home where consistent care can help deter readmissions.
As hospitals move toward more accountable care, they will be rewarded based on patient outcomes and results, and punished for fast readmissions.
The Occupational Outlook Handbook cites the median yearly pay for home health care aides is $20,170 ($9.70 per hour).
Factoring for home health care provides valuable cash flow solutions to help your organization effectively manage growth.