Source for expenditure data:
Centers for Medicare & Medicaid.
CMS National Health Expenditure Data, Table 10.
Includes all U.S. home health expenditures.
Between 2014 and 2015, Medicare spending on home health care increased by 2.3% to $18.1 billion.
Medicare spending on hospice was $15.9 billion.
Home Health Agencies
The U.S. Census Bureau reports 30,139 establishments providing home health care services, and 1,101 of those as franchise establishments.
In 2016, Medicare home health served 3.7 million persons and hospice served 1.4 million persons.
Nearly half, 45.2% of home health users had a diagnosis of diabetes, and 37.9% had a diagnosis of depression.
96.4% of home health users needed assistance with bathing.
Source: CDC/NCHS: National Study of Long-Term Care Providers, 2013-2014.
The projected population of people age 65 and older in 2060. Nearly one in four Americans will be in that age group.
Persons in the above age group that will be age 85 or older in 2060.
Source: U.S. Census Bureau. Profile America Facts for Features: CB17-FF.08. April 10, 2017.
Marginal profit for freestanding home health agencies averaged 18.1%. MedPAC projects Medicare margins for 2017 will equal 13.7%.
Aggregate Medicare margin for hospices in 2014 was 8.2%. MedPAC projects an aggregate Medicare margin of 7.7% for 2017.
- 33 visits per user
- 18.8 visits per episode
- 1.9 episodes per user
- $5,225 payment per user
- $2,965 payment per episode
- 86.7 days, average LOS
- 17 days, median LOS
- $149 average cost per day, all hospices
- $134 average cost per day, for-profits
- $173 average cost per day, nonprofits
|Agency Type||Home Health||Hospice|
Source: Fazzi analysis of Medicare cost report data.
|Type of Visit||Visits per Episode (2015)|
|Home Health Aide||2.0|
|Medical Social Services||0.1|
Source: Fazzi analysis of Medicare claims data.