The Centers for Medicare and Medicaid Services’ small pay bump for home health agencies in 2023 will not keep up with the rising expenses for some providers, potentially leading to credit defaults or consolidation, according to a new report. The nominal increase in Medicare reimbursement is substantially below home health providers’ rising labor and supply costs, acutely impacting for-profit home health chains like Amedisys and LHC Group that operate a large Medicare home health business, S&P Global Ratings analysts said in a report Thursday. Margin pressure could worsen in 2024, potentially leading to defaults and/or consolidation for home health agencies carrying a lot of debt on their balance sheets.
Read the full article: Home Health Providers Facing Default, Consolidation //
Source: s://www.modernhealthcare.com/post-acute-care/sp-global-home-health-agencies-defaults-consolidation-cms-medicare