Almost Family Earnings Drop Upon Medicare Rebasing
Home care provider Almost Family (NASDAQ: AFAM) saw earnings drop in the quarter ended June 30 to $2.5 million, down 49% from $4.5 million recorded in the same period last year.
Despite the decrease in earnings, the company reported growth among its Visiting Nurse segment, marking 2% admissions growth and Medicare admission growth of 3%.
Almost family executives noted the challenges in the current operating environment, including a rebasing of Medicare reimbursements for home health providers.
“Given the significant challenges the industry’s been facing we’re pleased, overall, with our results for the quarter. Medicare admissions were up 3% over the same quarter last year and personal care revenues grew almost 6%. In addition, we are continuing our work to address some of the significant changes in Medicare Advantage plans we experienced over the past few quarters,” said CEO William Yarmuth. “Finally, the long-awaited rebasing rules are now out and we can get to work on the challenges in front of us.”
With respect to the cuts to home health providers, the company said it is disappointed but will work now with a more certain understanding of the future in the industry and its business plans.
“We’re very disappointed that the rebasing rate cuts appear to be at the maximum allowed by statute and will be continuing our work with the Congress and regulators, along with others in the industry to focus attention on the potential access issues such steep cuts may cause” Yarmuth said. Meanwhile, even though we take issue with the rates, at least the home health industry now has some sense of visibility around which it can plan after more than three years of uncertainty.
Written by Elizabeth Ecker