Pennsylvania home health care agencies demand a budget allocation of $370 million to avert an imminent care catastrophe
Pennsylvania's In-Home Health Care Industry Faces Challenges Amidst Growing Demand
The in-home health care industry in Pennsylvania is facing a critical moment, grappling with a multitude of challenges that threaten its sustainability. The industry provides essential medical assistance and daily personal care to over 400,000 children and adults across the state.
Funding and Partnerships
Partnerships and expansions are underway to improve care delivery and reduce readmissions. For instance, tango, a post-acute care benefit enablement services provider, has partnered with AmeriHealth Caritas to deliver skilled home health care to Medicare Advantage dual-eligible special needs plan members in Pennsylvania. This collaboration leverages data-driven platforms and local expertise to improve coordinated care [1].
However, the industry faces challenges due to federal funding cuts, which can impact service delivery and accessibility [3].
Staffing Shortages
The home health care industry, both nationwide and in Pennsylvania, is grappling with significant staffing shortages and escalating labor costs. More than 112,500 home care shifts go unfilled every month due to staffing shortages in Pennsylvania alone. The low wages, with the average base wage for a personal assistance agency employee in Pennsylvania being $15.69 per hour, are contributing factors to these shortages [4].
Medicaid Reimbursement Rates
Pennsylvania is experiencing a Medicaid reimbursement crisis, which affects long-term care providers. The current reimbursement rates are insufficient to support the rising costs of care, leading to financial strain on providers [5]. An independent study commissioned by the Shapiro administration found that readjusting Medicaid reimbursement rates for home health care and personal assistance agencies to better align with competitive market rates would cost the state an additional $856 million [6].
Legislative Developments
The Democratic-controlled state House of Representatives passed a budget bill in July, but it did not include any additional funding for home health care. The demand on the industry may become too great, potentially causing families to take their loved ones out of the workforce to care for them at home [7].
There is ongoing legislative debate regarding oversight of private equity acquisitions in healthcare, including the potential impact on nursing homes and other care facilities [2].
The Pennsylvania Homecare Association is asking the state to invest an additional $370 million this year, representing a 10% increase in reimbursement rates for personal assistance services. This funding would help pay for wage increases, new hires, and expanded services [8]. However, this amount is less than half of what was recommended in the study commissioned by the Shapiro administration.
Governor Josh Shapiro's proposed budget only included a $21 million bump for wage increases among workers who care for adults with physical disabilities and seniors [9]. If home care shifts continue to go unfilled and staffing shortages escalate, families may have to resort to other options for their loved ones, such as nursing homes.
In summary, Pennsylvania's in-home health care industry faces challenges related to funding cuts, potential staffing shortages, and inadequate Medicaid reimbursement rates, amidst broader efforts to enhance care coordination and legislative oversight in healthcare. Lawmakers in Harrisburg are being urged to include an additional $370 million in the state budget to address these issues and build a sustainable future for long-term care in the state.
[1] tango press release [2] PennLive [3] Pennsylvania Budget and Policy Center [4] Pennsylvania Homecare Association [5] Pennsylvania Homecare Association [6] Pennsylvania Homecare Association [7] Pennsylvania Homecare Association [8] Pennsylvania Homecare Association [9] Pennsylvania Homecare Association
- The home health care industry in Pennsylvania delivers critical medical assistance to over 400,000 children and adults, providing daily personal care.
- Partnerships and expansions are being initiated in the industry to improve care delivery and reduce readmissions.
- For example, tango is partnering with AmeriHealth Caritas to deliver skilled home health care to Medicare Advantage patients in Pennsylvania.
- However, the industry is affected by federal funding cuts, which can impact service delivery and accessibility.
- The home health care industry grapples with significant staffing shortages and escalating labor costs.
- More than 112,500 home care shifts go unfilled every month in Pennsylvania due to staffing shortages.
- The average base wage for a personal assistance agency employee in Pennsylvania is $15.69 per hour, which contributes to staffing shortages.
- Pennsylvania is experiencing a Medicaid reimbursement crisis, which affects long-term care providers.
- The current Medicaid reimbursement rates are insufficient to support the rising costs of care, creating financial strain on providers.
- An independent study recommended adjusting Medicaid reimbursement rates for home health care to better align with competitive market rates, which would cost the state an additional $856 million.
- The Democratic-controlled state House of Representatives passed a budget bill, but it did not include any additional funding for home health care.
- There is ongoing legislative debate regarding oversight of private equity acquisitions in healthcare, impacting nursing homes and other care facilities.
- The Pennsylvania Homecare Association is asking the state to invest an additional $370 million this year to address the issues in the industry.
- This funding would help pay for wage increases, new hires, and expanded services.
- However, this amount is less than half of what was recommended in the study commissioned by the Shapiro administration.
- Governor Josh Shapiro's proposed budget only included a $21 million bump for wage increases among workers who care for adults with physical disabilities and seniors.
- If home care shifts continue to go unfilled and staffing shortages escalate, families may have to resort to other options for their loved ones, such as nursing homes.
- Lawmakers in Harrisburg are being urged to include an additional $370 million in the state budget to address these issues and build a sustainable future for long-term care in the state.
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