Home Health & Hospice Week

Know Your Facts:

HHA Numbers Have Exceeded 1990s Highs

Growth is concentrated in Florida, Texas.

Here are the stats the Medicare Payment Advisory Commission is using when making its influential recommendations to Congress about your Medicare payments:

  • There were 11,300 Medicare-certified home health agencies in 2010, which is up 50 percent since 2002 and exceeds highs set in the 1990s.
  • More than 1,000 new agencies opened in 2009.
  • Growth is concentrated in a few areas, such as Florida and Texas.
  • The number of home health users has grown 3.9 percent since 2002, to 3.3 million in 2009.
  • The number of home health episodes has grown 6.9 percent from 2002 to 2009, to 6.5 million.
  • The number of episodes per user has grown from 1.6 to 2.0 from 2002 to 2009.
  • In 2001, episodes were split about evenly between admissions from the community versus the hospital. In 2008, 64 percent of admissions came from the community.
  • In 2009, freestanding HHAs had an average profit margin of 17.7 percent. The margins varied widely, with agencies at the 25th percentile having a 2.2 percent margin and agencies at the 75th percentile having a 26.2 percent margin.
  • In 2009, for-profit freestanding HHAs had an average 18.7 percent profit margin while non-profits saw a 14.4 percent average margin.
  • Urban freestanding agencies saw a 17.9 percent average profit margin in 2009, while rural agencies recorded a 16.6 percent margin.
  • In 2008, the national average percentage of beneficiaries in a county using home health services was 9 percent. In contrast, certain high-utilization counties in Texas, Florida, Oklahoma, Louisiana, and Mississippi saw rates of up to 35 percent.
  • The prospective payment system was based on visit figures that averaged 32 per episode, but agencies currently make an average of 22 visits per episode.

Source: MedPAC Dec. 3 meeting presentation and proceedings.

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