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Why Are Home Health Agencies Ditching Telehealth?

Why Are Home Health Agencies Ditching Telehealth?


In recent months, a concerning trend has emerged within the home health sector: many agencies are turning away from telehealth services. A study conducted by the National Institute on Aging and the University of California, Irvine, sheds light on this pivotal shift, revealing that complexity and inadequate reimbursement are significant barriers to sustaining virtual care in home health settings.

The uptake of telehealth skyrocketed during the COVID-19 pandemic when home health agencies leaned heavily on virtual care to ensure continued patient support. By 2021, approximately 65% of these agencies integrated telehealth into their operations, a significant increase from around 23% in 2019. However, the latest findings indicate that by 2024, nearly 19% of home health agencies have opted to discontinue these services, citing unsustainable practices and reimbursement challenges as primary concerns.

Dana Mukamel, a distinguished professor of medicine at UC Irvine, expressed grave concerns about this trend: “Our findings suggest that without Centers for Medicare & Medicaid Services (CMS) reimbursement, many agencies may abandon telehealth, potentially missing opportunities to improve care and manage costs as home health demand skyrockets.” This poses a significant question regarding the ability of home health agencies to keep pace with the increasing reliance on virtual care amid a rising need for home-based services.

Interestingly, the study also highlighted that one-third of the surveyed home health agencies have not incorporated telehealth at all, asserting that such an approach is inappropriate for their hands-on care model. This scenario underscores the study’s focus: many participating organizations cater to elderly patients, particularly those grappling with dementia-related health issues, which may complicate the adoption of virtual care solutions.

The research indicates that the COVID-19 pandemic interrupted the progressive integration of telehealth into home healthcare. Without the pandemic forcing telehealth’s hand, agencies may have continued down a path of recognizing and reaping the benefits of virtual care. However, the perceived limitations of telehealth for older adults, along with reimbursement hurdles, are significant obstacles.

Two critical insights emerge from this study. First, there is a noted decline in telehealth adoption following the pandemic as many patients prefer in-person visits with their healthcare providers. While proponents of telehealth espouse a balanced strategy that incorporates both in-person care and virtual visits, reimbursement disparities remain a major barrier. Legislative efforts introduced during the pandemic allowed for a temporary easing of telehealth restrictions; however, these federal waivers are set to expire soon, raising fears of diminished services as agencies may reduce their telehealth capabilities without a solid reimbursement framework.

Second, the aging population in the United States presents another layer of urgency. With a substantial number of individuals approaching retirement age and aiming to remain in their homes rather than transitioning to assisted living environments, the demand for home health services is escalating. The healthcare industry is already grappling with workforce shortages, making the case for robust telehealth programs even more compelling. Telehealth can serve as a vital channel for delivering care, alleviating some of the burdens on providers dealing with this growing demographic.

To address these challenges, alignment between federal policies and telehealth reimbursement is paramount for sustaining telehealth services in home healthcare. Moreover, the industry must advocate for effective, user-friendly virtual care tools and platforms. Given the healthcare system’s ambition to extend services into home environments through methodologies like remote patient monitoring and “Hospital at Home” models, the collaboration and support of the home health industry is crucial for ensuring that these services thrive.

In light of all these factors, a concerted effort among stakeholders is essential. Achieving a balance between in-person care and telehealth integration can fundamentally transform patient care experiences. As healthcare leaders continue to seek innovative solutions to reach patients in their homes, the lessons from this study must inform future strategies to solidify telehealth’s role in home healthcare.

The landscape of telehealth in home care evidently reflects both promise and challenges. Home health agencies must continually reassess their strategies, leveraging the lessons learned during and after the pandemic. Awareness of the changing needs of patients and the regulatory environment can drive improved outcomes, ensuring that the evolution of healthcare delivery continues unabated.

Health agencies that successfully bridge the gap in virtual care may not only enhance patient experiences but also make significant contributions toward alleviating the strains faced by a burgeoning healthcare system. As discussions around the future of telehealth continue, all eyes will remain on reimbursement policies, patient-centered care approaches, and the innovation driving changes in home health practices.

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