Embracing Innovation: Home Health Providers Set For A Promising 2025

Despite initial challenges, 2025 appears promising for home health providers, as indicated by industry experts in Home Health Care News’s recent webinar, Home Health Outlook 2025.

During the discussion, experts addressed several key issues, including Medicare Advantage (MA) reimbursement rates, labor shortages and improved technology integration. The panel also explored future risk-sharing opportunities and highlighted the importance of addressing social determinants of health.

Panelists agreed that providers will need to navigate fee-for-service rate cuts while working to secure better contracts with MA plans. Additionally, finding ways to grow despite staffing constraints and adopting the right technological innovations will be essential.

“When we examine total reimbursement across the health care sector, primarily in home-based care, it is important to note that Medicare Advantage is not fully recognized at the federal level, which is a significant concern,” Choice Health at Home CEO David Jackson said during the webinar.

Choice Health at Home, based in Tyler, Texas, provides a range of services, including home health care, hospice, palliative care and rehabilitation, in multiple states: Oklahoma, Kansas, Arizona, Colorado, Utah and Nevada.

Jackson raised labor issues as a primary concern for the industry and discussed the impact of MA on these challenges.

“If you examine what the federal government has done with traditional Medicare reimbursement and compare it to contracting with Medicare Advantage, you must consider labor costs. We need to address the elephant in the room — Medicare Advantage’s ongoing failure to pay sustainable rates for home health care,” he said.

Bud Langham, executive vice president of clinical excellence and strategy at Enhabit Home Health & Hospice (NYSE: EHAB), emphasized the difficulty in finding suitable staff in today’s climate.

“We want individuals with the right skills, acumen and heart to deliver quality care in a home setting,” he said. “With recent rate changes in our industry, competing for top talent has become more challenging, and I expect this situation to continue into 2025.”

Enhabit, based in Dallas, operates 256 home health locations and 112 hospice locations across 34 states.

On a positive note, CareXM CEO Si Luo pointed out that these reimbursement challenges might encourage the industry to explore tools and processes to enhance productivity within the existing workforce.

CareXM, located in Lehi, Utah, is a triage technology platform serving more than 4,500 health care organizations across the U.S.

Experts predict technology will play an even more significant role in the industry in 2025, with remote monitoring and artificial intelligence (AI) becoming key components.

“I’m optimistic about the potential of sensors,” Langham noted. “These sensors will help us collect clinical data passively from patients, enabling us to anticipate clinical events and engage proactively. There’s a real opportunity to leverage data from sensors already present in patients’ homes.”

Jackson highlighted AI solutions like Apricot, which assist with clinical documentation and reduce administrative burdens. These technologies allow staff to spend more time with patients while ensuring they have time to return home to their families at the end of the day.

The industry experts expressed enthusiasm for new models that enhance value for Medicare beneficiaries. Anticipated successes for 2025 include hospital-at-home initiatives, skilled nursing care at home and various types of disease-specific care.

“I believe we are at a logical point to take risks now,” Langham said. “I hope to see more opportunities for risk-taking available to home health providers in the future. I believe this could yield an excellent return on investment if the federal government supported us with more opportunities.”

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