Costs are rising everywhere, putting increased pressure on seniors’ choices.
So, what’s happening in the home healthcare world? On the one hand, you have CMS cutting Medicare payments, with MedPAC suggesting the cuts should be even higher. In addition, wages rates are rising, and home care workers in Washington state have won a $16 per hour wage in the future. On the other hand, new home healthcare startups are raising a lot of money, including $42 million earlier this month by California-based Honor, which is expanding into Texas. And then we read about a small home health provider in California who decided to get into the seniors housing business because home health has become too expensive for his customers. Come again? It really should not be a surprise. I have been saying for years that while most people prefer to stay in their homes, this concept that home healthcare is a cheaper option just is not the case, unless all you need is for someone to stop in twice a day for an hour or so. But with minimum wages starting to increase, not to mention all the costs of maintaining your own home, staying at home will be affordable only for the very wealthy if you really need supervision and care beyond a short visit or two.