Key Challenges Home Health Care Agencies Face

Key Challenges Home Health Care Agencies Face

An increase in LUPA is seen mostly during the time of public health emergencies. It results in a dramatic loss of revenue.

FREMONT, CA: The top two priorities of Home Health Care agencies are quality care and patient satisfaction. However, various challenges on the way prevent providers from delivering on those priorities. No industry is immune to challenges. Everyone faces obstacles, but only a few overcome them eventually.

Let us look at some of the major challenges home health care agencies face:

Attracting and Retaining Staff

It has been among the top challenges faced by Home Health agencies for several years. The ICA Group measures that the Home Health Care industry would need to hire and train 13 million new caregivers to meet patients' changing demands by 2024. Not having sufficient staff can hinder the business's growth since they need adequate employees to take good care of patients. It also impacts the relationship with referral partners. Also, imposing excessive work stress on caregivers can increase turnover rates in the agency. Shortage of staff can also cause staff and patient frustration, often leading to inferior patient care and lower patient satisfaction scores.

An Increase in Low Utilization Payment Adjustments (LUPA)

An increase in LUPA is seen mostly during the time of public health emergencies. It results in a dramatic loss of revenue. As per the NAHC survey, 52 percent of home health agencies with below national average LUPAs in March 2019 reported at least a threefold of LUPAs in March 2020. Roughly two-thirds of agencies reported at least a twofold increase in LUPAs.

Poor Documentation

Poor documentation can result in revenue loss. As per the United States Office of Inspector General, it was found that over 90 percent of the Comprehensive Error Rate Testing (CERT) audit denials of high-risk home health agencies were based on "insufficient documentation." Review Choice Demonstration, state surveys, ADRs, and audits open up the risk for revenue loss due to poor documentation that does not justify the necessity for Home Health.

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