2024 Home Health Trends – Diversification of Services at the Forefront

One of the biggest trends that we are going to see in the home care and home health industry in 2024 is diversification of services. With the increased demand for home-based services, agencies are going to see tremendous growth opportunities if they can diversify their services. 

Part of this is going to be driven by the increasing shift to value-based care. Home health and the home care industry is increasingly shifting towards a value-based care model. The Home Health VBP Model was expanded nationwide in 2023 and encompasses care for Medicare patients. However, it is important to note that Medicare only covers the first 100 days of service in a 12-month period for those without supplemental or secondary insurance, or that have not purchased a Medicare Advantage plan. With the shifting focus on keeping people at home through home health and home care initiatives, we may continue to see a shift towards consumers purchasing Medicare Advantage plans to ensure coverage.

With this influx of demand, we might see large Managed Care Organizations (MCOs) and Medicare Advantage (M.A.) plans pushing home health and home care agencies to diversify their services to meet more comprehensive patient needs. And providers looking to hedge against reimbursement and revenue risks have plenty of options to diversify service offerings and revenue sources. 

Agencies can expand services to include Home and Community Based Services (HCBS) for Medicaid and Medicaid Waiver programs. They can offer private duty nursing services that are funded by Medicaid, Medicaid Waiver, or Private Insurance companies. There are also Outpatient Therapy (Medicare Part B) Services that can be provided at patients’ homes, which agency therapists are already trained to do. The good news is that home health agencies can expand these services and diversify payers with their existing infrastructure and the skill sets that they already possess. They just need to reorient marketing and ensure employees are properly trained for the shift. 

Another way that home health and home care agencies are diversifying is by offering a more holistic approach to care. The integration of whole-person care into home health services is something that we will continue to see in 2024 and beyond. Physicians and healthcare providers are increasingly offering comprehensive care plans that include mental health services and other specialized care directly in the home. This approach ensures that patients receive a continuum of care that addresses all aspects of their health, leading to better outcomes and higher patient satisfaction.

It’s important to note that this diversification is not merely about expanding the range of services but aligning them with the goals of enhancing patient outcomes and reducing overall healthcare costs. By diversifying services and providing services like Certified Home Health, Non-Medical Personal Care, Private Duty Nursing, Therapy at Home, Pediatric Care, Mental Health, and more, agencies can protect themselves against the impact of reimbursement cuts while taking advantage of existing skill sets. And, if proper training and infrastructure is in place to provide quality care, this is also a win for consumers. Individuals will be able to receive a full continuum of care from a single agency, which eliminates the need for shopping around and trying to work through various agencies. By simplifying the process, we can improve the care coordination and the accessibility of care for our aging population and the chronically ill.