The home health final rule will have a lasting effect on providers’ bottom lines.
The U.S. Centers for Medicare & Medicaid Services (CMS) released its 2023 final payment rule for home health care in late October. Many providers believe that the final rule will have an impact on their business in the near- and long-term future, a new survey from Homecare Homebase and Home Health Care News suggests.
The survey includes responses from almost 300 industry professionals working in the home-based care space.
When asked if they believe the final rule will have an impact on their finances in the near future, 60% of respondents said it would be “somewhat” impactful on their business. Respondents also noted that there would be some margin pressure, but that ultimately they would be okay.
Meanwhile, 12% of respondents believe that the final rule will be extremely impactful to their business, threatening survival. Only 11% of respondents said it would not be impactful to their business at all.
In the long-term — looking towards 2024 and beyond — 50% of respondents believe that the final rule will be somewhat impactful in terms of business, while 20% of respondents believe that it will have an extreme impact on their business. On the flip side, 9% of respondents do not think it will be impactful at all.
As far as where the greatest impact will be felt, 44% of respondents believe that the final rule will disrupt their ability to attract and retain staff, as well as meet referral demand.
Additionally, 17% of respondents believe that the final rule will impact their ability to invest in new technologies and back-office functions, while 12% said it would impact their ability to grow the business through M&A or de novos.
Still, 42% believe their revenue would increase in 2023. However, 29% of respondents believe that it will go down, and 29% believe it will stay the same.