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Home Health Care: New Opportunities and Challenges for Care Provided Inside the Home


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As health care organizations map out their value-based care strategies, they are identifying ways to both reduce costs and meet the demands of the health care consumer of the future. To achieve these goals, traditional home health care providers are partnering with other organizations to decrease acute and post-acute care use (e.g., lowering readmission rates, identifying skilled nursing substitutes) as well as facility-based long-term care services and supports (LTSS). States, through their Medicaid programs, are entering into new payment arrangements with health plans and providers; many have a goal of redirecting resources away from facility-based long-term care.

Thinking of home care more broadly to include leveraging technology that allows care to be provided in people’s homes, there is even greater potential for new models of care that — in the face of evolving payment incentives — should be valuable in engaging patients, improving health and reducing costs.

Despite these opportunities, stakeholders should note that the payment and regulatory environment for home health care under traditional fee-for-service (FFS) Medicare may be very challenging. It requires that organizations focus on specific payment incentives, reduce costs where possible and remain up-to-date about fraud and abuse enforcement activities.

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As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

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