For many years, home care agencies have relied on private pay as a major revenue source. But according to the Home Care Pulse Benchmarking Study, that is changing. In 2018, home care operators reported that 72.% of their annual revenue came from private pay, while in 2020, agencies reported that just 65% of annual revenue came from private pay. What has changed over the years?
For one, the industry is seeing a shift with more government-funded sources paying for home care like Medicaid waivers and veterans programs. According to Kire Madsen, VP of Customer Success, Home Care Pulse, who spoke on this month’s Agency Momentum webinar, more government-funded sources and increased awareness of those programs has resulted in a slight decrease in agency’s private pay revenue. Madsen stressed that private pay is not going away, however other sources are expanding, especially Medicare Advantage, which is a newer revenue source that continues to grow as more plans offer to cover in-home support services.
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