Home Health & Hospice Week

Industry Notes:

Olmstead Home Care Far From Reality, Federal Report Says

States have a long way to go to comply with the Supreme Court's 1999 Olmstead v L.C. decision that requires Medicaid programs to cover services in the community rather than institutions where possible.

So says a new report from the National Council on Disability. Changes to laws, regulations and funding may be needed before states will completely implement Olmstead's mandates for community-based care, the report says.

The NCD recommends that the Centers for Medicare & Medicaid Services furnish more explicit guidance on implementing Olmstead and use its waiver program to encourage Olmstead compliance. The report is at www.ncd.gov/whats new.html.

  • Virginia and South Dakota scored well with the HHS Office of Inspector General over Medicaid drug rebates, but the OIG found Washington state and Hawaii lacking. Washington state received a harsh report card, with the OIG bringing its policies, procedures and internal controls for drug rebate transactions to task (A-10-03-00007). The OIG criticized Hawaii for its drug rebate collections procedures (A-04-03-06013).

  • The Department of Health and Human Services is awarding more than $12 million in grants to develop innovative approaches to provide care for people with Alzheimer's disease and to support their family caregivers.

    The money will support seven new demonstration programs in Connecticut, Idaho, Kentucky, Louisiana, Nebraska, Puerto Rico and Utah. The awards also will fund the continuation of projects in 32 other states. More details on the grants are at www.hhs.gov/news/press/2003pres/20030813a.html.

  • Statistics gurus may want to check out a new document from CMS' OASIS contractor. The report details the risk adjustment procedures used for home health agency outcome reports from April 2003 onward.

    "Documentation of Prediction Models Used for Risk Adjustment of Home Health Agency Outcome Reports" from the Center for Health Services Research at the University of Colorado is at www.cms.hhs.gov/oasis/riskadj1appa.pdf.

  • The Department of Defense has proposed an expansion of home care benefits to TRICARE members in a proposed rule in the Aug. 6 Federal Register. The proposal repeals the Individual Case Management Program and changes the Program For Persons With Disabilities to the Extended Health Care Option (ECHO).

    Under a 2002 law, the DoD was required to develop a new home-care-focused health care program under TRICARE, says the National Association for Home Care & Hospice.

    "Under the new program, the number of potentially eligible individuals is expanded, a respite care benefit is added, and the home health care benefit component is improved to include coverage for comprehensive home health supplies and services not limited to part-time or intermittent care," NAHC cheers.

    The rule is at www.access.gpo.gov/su_docs/fedreg/a030806c.html.

  • Health care financier DVI Inc. says it's filing for Chapter 11 bankruptcy, and experts expect the situation to turn to Chapter 7 bankruptcy fairly quickly. That's bad news for health care companies with financing from Jamison, PA-based DVI.

    Those providers could see their receivables locked up in DVI's bankruptcy proceedings. Like companies that saw their financier National Century Financial Enterprises collapse last year, DVI-financed providers might face Chapter 11 themselves.

  • Medicaid cuts are looming large on a number of home care companies' horizons this quarter. New York Health Care Inc. warned in its quarterly earnings report that laws in both New Jersey and New York could seriously hurt business. In New Jersey, pending legislation would require companies to pay aides at least $10 per hour and would limit the amount of money that could go to overhead expenses. If the legislation passes, Brooklyn-based NYHC would likely cease to do business in the state, it says.

    In New York, pending legislation would also limit the amount of money home care offices could spend on overhead, even if they don't receive money directly from the government, says the company. NYHC reported a net loss of $689,088 on revenues of $10.8 million for the quarter ended June 30.

    Almost Family Inc. says it's keeping its eye on Medicaid legislation in a number of states. Medicare and Medicaid cuts already enacted have cost the company $450,000. A 16 percent growth in visiting nurse admissions helped offset those losses. The Louisville, KY-based visiting nurse and adult day care service company reported net income of $489,659 on revenues of $21.8 million for the quarter.

    Similarly, Pediatric Services of America Inc. is keeping close tabs on Medicare legislation in a number of states with budget shortfalls, it says. "We have engaged consultants in selective markets to directly present the Company's cost saving strategies and related rate requests to the respective state Medicaid program," PSAI says. It's also working on other cost-saving programs to help Medicaid programs maintain their rates.

    PSAI reported net income of $1.35 million on revenues of $54.1 million for the quarter. The company praised its home medical equipment start-ups, and says it plans private duty nursing start-ups in the future. PSAI also plans staffing reductions, it says.

  • Bankrupt Med Diversified Inc. has recorded a profit for the first time in its history. Andover, MA-based Med reports net income of $1 million on revenues of $84.1 million for the quarter ended June 30. CEO Frank Magliochetti, Jr. says the company is optimistic about emerging from bankruptcy and competing in the marketplace.

  • American HomePatient's last quarter before emerging from bankruptcy appears to have been a positive one. The Brentwood, TN-based durable medical equipment company reported net income of $4.5 million on revenues of $82.9 million for the quarter ended June 30, compared to a loss of $64,000 on revenues of $79 million for the same period in 2002.

    AHP emerged from bankruptcy July 1. It continues to fight secured lenders' bankruptcy claims in federal court, it notes.

  • Home health agencies and hospices accredited by the Community Health Accreditation Program (CHAP) soon will receive an extra bonus. CHAP HHAs will have access to quality reports and an online benchmarking tool from Outcome Concept Systems Inc., the Seattle-based benchmarking vendor says. The benchmarking feature furnishes outcomes comparisons with utilization and financial information, OCS says.