The Hidden Costs Home Health Providers Face When Taking on More MA Patients

Posted May 10, 2023

Medicare Advantage (MA) penetration continues to grow and home health agencies are coming to grips with the additional costs that are associated with changing to a payer mix dominated by MA.  Whether those costs come from operational changes or otherwise, the financial impact of MA’s growth in the area can’t be ignored.

“To get Medicare Advantage right, you have to be prepared for a sea change in your cost structure and the way that you operate your business,” Frontpoint Health CEO Brent Korte told Home Health Care News. “There’s only so much change any provider can make from a clinician expense perspective. A lot of larger providers, in particular, would say that kind of restructuring is impossible. It’s impossible to get the cost structure right unless they’re completely prepared to restructure their organization.”

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