For homecare equipment providers, every dollar counts

Sports Editor

Bill Mixon

Flat or declining reimbursement rates — particularly from Medicaid — are making it harder for homecare providers to serve an aging population.

More than 75% of people over the age of 50 say they’d prefer to age in place. However, many of these people rely on Medicaid to pay for their healthcare services.

But patients may soon lose access to high quality homecare if state officials do not prioritize making sure their Medicaid programs are paying enough to keep homecare accessible.

Rates to homecare providers are stuck in the past.

States like Connecticut are even making direct cuts to Medicaid funding for home medical equipment. Between 2017 and 2019, these cuts amounted to $5.3 million.

These stagnant rates — or cuts — don't make sense.

Home medical equipment companies, like mine, represent a tiny portion of each state's Medicaid budget. In fact, provision of appropriate home medical equipment can prevent spending on things like hospital stays — saving the state Medicaid program money.

Home medical equipment companies serve the medical needs of Americans who require diabetes management supplies, oxygen systems, wheelchairs, medical supplies, and other medical equipment and services in their homes.

My company specializes in complex rehab technology (CRT).

Home medical equipment products and services not only improve independence and function, but also keep the overall cost of healthcare down by reducing additional medical complications and caregiving requirements.

So, when states fail to address low reimbursement rates, they disregard current business realities for providers who are facing inflation, supply shortages, and other challenges.

Homecare providers have struggled to keep qualified workers in stock, too.

Low reimbursements from Medicaid and other insurers make it difficult for homecare providers to pay enough to attract and retain talent. My company has experienced increased labor costs over the past two years, with costs rising more than 16% for technicians and more than 15% for customer service representatives.

More broadly, 95% of manufacturers cite raw material prices as a top source of inflation; 40% of manufacturers say inflationary pressures are worse today than six months ago.

Add all these challenges up, and it's no wonder that homecare providers nationwide are scaling back or closing up shop entirely.

Nearly 40% of counties nationwide do not have a traditional home medical equipment supplier.

Our healthcare system can't afford to have homecare providers disappear. High quality, home-based care is more efficient and cost-effective than alternatives. That's in part because people who receive care at home need to visit the emergency room or hospital less.

Equipping a home to be more accessible is one-third the cost of an average stay in the hospital after a fall ($10k vs $30k).

No one should have to become immobile in their own home — or be unnecessarily driven from it into an institutional setting. It's time to place dignity and quality of life first by making sure Medicaid reimbursement rates keep pace with market realities for home medical equipment providers.

Bill Mixon is a current board member and former CEO of National Seating & Mobility (NSM).

Sports Editor

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