Majority of Home Health Agencies Lack Confidence Under Healthcare Reforms

Declining reimbursements and operating costs has created uncertainty among home health agencies’ confidence in operating under healthcare reforms, according to a survey from Provista.

Of home health agencies surveyed by Provista—a supply chain improvement company that helps both acute and non-acute healthcare providers control their supply costs—46% have a high level of confidence in there ability to adapt to a new healthcare landscape. On the flip side, only 42% said they were “somewhat  confident.”

While while some facilities such as ambulatory surgical centers (72%) and cancer centers (66%) are most confident in their ability to adapt to industry changes brought on by healthcare reform, home health agencies are less so.


Diminishing reimbursements have put reducing costs at the forefront of many healthcare providers’ business strategies moving forward as a result of healthcare reforms.

Home health agencies are no exception, as 74% of respondents in this sector said their organizations will prepare for healthcare reforms by cutting costs.

Additionally, 58% of home health agencies said they plan to expand/diversify their services into other areas. Another 16% said they intend to survive in the new landscape by participating in Accountable Care Organizations (ACOs).


Provista expanded its survey this year to include home health agencies, as well as physician practices and cancer centers, as these areas would provide the data with a broader snapshot of current challenges these sectors face, according to Rosario Jacinto, Provista’s market intelligence manager.

“Building on last year’s survey, we wanted to determine if there were any significant shifts in the attitudes and opinions of our customer base,” said Jacinto.

Expanding services includes purchasing computer software for 61% of home health agencies, with 16% of agencies looking toward telehealth monitoring systems to help them navigate the new healthcare landscape in the future.

Written by Jason Oliva

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