Home Health and the Sequester

Your agency, like so many others is affected by the 2% automatic reimbursement reduction imposed by the Sequester.  Although just effecting Medicare, and not Medicaid, agencies are feeling the impact.  However, is this 2% cut for the rest of 2013 just a precursor to future reimbursement changes?


If you thought yes, you are correct.  MedPac’s most recent report to Congress also indicated that future cuts will be occurring and could be larger than those in the past.  With most agencies profit margins shrinking, these future reimbursement decreases are not going to be sustainable.

With less revenue coming in and increased costs, what will agencies need to do?  Agencies like yours is going to be required to examine staffing models, overhead costs and quality of care provided.


Differentiation and innovation within an agency is going to make you an easy choice for referral sources.  But, innovation and differentiation comes with a cost – quality. If you are unable to demonstrate quality and effective management at reducing hospitalizations, all of your hard work is not going to go far.


Don’t let your agency be history. You and your agency need to make history. Much like the change from per visit reimbursement to IPS (Interim Payment System) to PPS, changes are occurring. Only the strongest, well managed and quality driven agencies will make it.  Give us a call today, so we can make sure you are building a strong foundation.  You worked hard to build your agency. We want you to be around for a long time and make sure your agency is not a victim of shrinking reimbursement.