As we look toward 2023, there are a few concerns that are on the top of the list for home care agency CEOs, executives, and owners. So in this blog from CareConnect, we’ll take a look at a few top concerns that are affecting the home care agency landscape in 2023 and beyond, and how you and your home care agency can prepare for them.

Medicare Payment Cuts Starting in November 2023

The federal government and the Center for Medicaid Services are working to implement a 7.69% multi-year Medicare payment cut, starting in 2023, which would result in $810 million in payment reductions in 2023 alone.

This is a huge concern for home care agencies, which already suffer from razor-thin margins and growing demand for home care aides. Home care agencies and leaders are looking for ways to convince the Biden administration to remove these cuts from the final rule, and to develop a policy that meets the needs of the government, home care agencies, caregivers, and patients alike.

Looking to take action? Please contact your senators and representatives to speak about your concerns about this bill. Your direct involvement will make the difference, especially since the Preserving Access to Home Health Act of 2022 was introduced to Congress this year. If passed successfully, this act would prevent payment cuts to Medicare home health services until the year 2026, and provide a valuable lifeline to home care agencies, home care workers, and the patients who rely on their services.

Rising Costs of Care Due to Worker Shortages, Infection Control, Inflation & More

The costs of running an HHA have gotten higher over time. Costs are rising for infection control and regulatory compliance, thanks to the COVID-19 pandemic. In addition, historically high inflation and high fuel prices mean that caregivers are seeking higher wages in order to make ends meet for their families. 

Along with the proposed rate cuts, this means that margins for home care agencies are slimmer than ever. Cutting administrative costs is one way to help manage these costs and maintain profitability. Tools like CareConnect can help with scheduling and caregiver management. 

In addition, CareConnect’s new Scheduling as a Service offering can also help you reduce overhead associated with scheduling workers for shifts. Scheduling as a Service provides cost-effective and experienced shift scheduling support that can augment or even replace your scheduling team. This helps boost cost efficiency, fill more shifts, and reduce overall staffing costs at your firm.

Increased Role of Technology, Including Remote Monitoring, Televisits

This is a concern but also an opportunity. Many home care agencies are implementing remote monitoring technology, telemedicine, and other medical technology to help improve overall patient outcomes.

By investing in this technology, you may pay more upfront, but you can gain a competitive edge over other home care agencies – resulting in better service, more satisfied patients, and a growing business.

This is particularly important as data collection becomes more important in the world of home care. Implementing more technology at your agency can help you improve overall patient outcomes – and can also help you gather quantifiable, actionable data that shows the positive impact that your home care agency has for patients.

Enhancing Diversity, Equity, and Inclusion to Better Serve Patients & Communities

This is another challenge that also serves as an opportunity. Many home care agencies are focused on DEI (Diversity, Equity, and Inclusion) in 2023 and beyond. By focusing on DEI, you can recruit caregivers and staff that are ideally suited for the communities you serve. In turn, this helps increase overall diversity at your company and provide increased access and better service to groups who have historically been underserved by home care agencies.

For example, you can focus on hiring Spanish-speaking workers in an area where you are primarily serving people whose native language is Spanish. This can help your caregivers provide better support and a better overall care experience for patients in your local community.

Be Prepared to Overcome These Challenges – and Grow in 2023 And Beyond

Thanks for reading. At CareConnect, we’re always here to help customers prepare for the future of home care. To learn more about our HR software and how we can set your business up for success, click here to schedule a chat. And for more insights into the world of home care in 2023 and beyond, keep an eye on our blog.