Opinion: Economics of comfort: Why home-based care works

Amber Popek

As health care organizations nationwide struggle with rising costs, workforce shortages and turnover, combined with the increasing need for individualized care, one solution gaining momentum is home-based care.

What began as a limited option has become vital to today’s health care landscape. The concept is simple yet transformative: bringing care to the patient rather than bringing the patient to the care. Home-based care is not a substitute for needed care in an inpatient facility, but rather a strategic extension of care after discharge from a facility or to supplement the management of chronic or prolonged conditions and rehabilitation services.

As data continues to mount, the case for expanding home-based care becomes increasingly apparent. This critical health care component helps reduce inpatient readmissions, shorten inpatient stays and support sustained long-term economic and patient satisfaction outcomes.

Patient needs and home-based care
For patients, the advantages are clear. Home is a place of comfort, dignity and familiarity. Receiving care in one’s home environment allows patients to maintain independence, stay connected to loved ones and avoid the stress and anxiety that often come with certain settings.

One of the compelling reasons to invest in home-based care is the accelerating aging population in the United States. According to the U.S. Census Bureau, adults aged 65 and over will outnumber children for the first time in history by 2034. Americans now live longer and may have conditions requiring ongoing health care attention. This demographic shift places increasing pressure on inpatient facilities. Many individuals prefer home-based care that offers a practical and comfortable way to prolong independence. This option helps to reduce overall health care costs and improve quality of life.

Telehealth and convenient options
The COVID-19 pandemic accelerated a shift that had already begun years ago: Virtual care and telehealth became essential tools in delivering health care safely and efficiently. As providers and patients alike turned to appropriate remote care solutions, telehealth proved its value by enabling real-time remote monitoring and digital diagnostics, all from the safety of the patient’s home.

As appropriate needs arise, patients now have an option for virtual care as part of their ongoing health journey. Home-based care complements telehealth by offering a hybrid model that combines the human touch of in-home visits with ongoing digital monitoring and communication efficiency. The rise of telehealth has improved home-based care, as providers can track vital signs, conduct virtual visits, and respond to issues promptly and efficiently without the patient leaving their home.

Financial benefits
From a financial standpoint, home-based care is poised as a game-changer since it complements inpatient settings. Inpatient facilities are expensive to operate, and prolonged stays are not always financially sustainable.

Home-based care can extend inpatient treatment, enabling fewer remissions and earlier discharge for appropriate patients. As a result, providers may be better positioned to avoid costly penalties tied to inpatient remissions while improving overall efficiency. The transition to home-based care helps free up resources, especially during high-demand periods like flu season or public health emergencies. Furthermore, by eliminating many overhead expenses associated with inpatient stays that could be safely transitioned to home-based care, it can save costs and be reinvested into preventive services, staff development, and infrastructure improvements.

Home-based care challenges
Of course, home-based care is not without its challenges. Payment models must evolve to support in-home services, with rates that reflect the growing complexity, demand and rising cost of health care. Providers’ desire for various payors (Medicare, Medicaid, insurance companies, etc.) to appropriately increase payment rates can help ensure providers may continue offering high-quality care delivered in the home while also advancing broader goals.

A recent national poll conducted by Fabrizio Ward LLC found that voters not only support having the option to receive treatment at home, but also view it as a more cost-effective alternative. Key findings from the poll include the following:

• 91% of voters believe it’s important for health care to be delivered at home and that Medicare covers it.
• 64% of voters prefer receiving treatment at home for themselves or loved ones.
• 71% of voters think that treatment at home has lower costs.

The evidence is clear: Home-based care can help to reduce inpatient readmissions, improve patient outcomes and satisfaction, and save overall health care costs. Now is the time for health care leaders, policymakers and payors to embrace this model and invest in its continued expansion.

Amber Popek is a partner with Forvis Mazars LLP. She can be reached at amber.popek@us.forvismazars.com.