A growing number of health systems are outsourcing home health and hospice operations to third-party specialists with broader geographic reach to reduce cost and administrative burdens and focus on core services.
The regulatory environment for home health and hospice is complex, with stringent requirements for reimbursement, reporting and patient care standards. Partnering with an outsourced provider also helps systems mitigate the risks associated with non-compliance and operational issues.
Here are four health systems that have outsourced or plan to outsource home health and hospicare care:
1. Renton, Wash.-based Providence plans to outsource home-based care services to Compassus, a home care provider with 270 locations across 30 states, through a new joint venture.
As part of the agreement, Compassus will oversee operations for the joint venture, which will cover 24 home health locations across Alaska, California, Oregon, and Washington, along with 17 hospice and palliative care sites in Alaska, California, Oregon, Texas and Washington. The joint venture will also manage private duty services in Southern California.
The transaction is subject to regulatory approval and closing conditions.
2. Columbus-based OhioHealth is also outsourcing its home health and hospice services to Compassus.
About 500 OhioHealth employees will transition to Compassus once the transaction closes, a spokesperson for the health system told Becker's.
"OhioHealth's core business is taking care of patients at our hospitals, physician practices, surgery centers and outpatient settings delivering high quality, post-acute care," OhioHealth said in a statement shared with Becker's. "As healthcare transforms, we need to change with it to ensure our patients continue to receive high-quality, in-home and hospice services."
3. Cincinnati-based Bon Secours Mercy Health in March finalized an agreement to transfer operations of its home health and hospice operations across five states to Compassus.
Per the arrangement, which is subject to regulatory review, Compassus will manage 10 home health agencies and 11 hospice operations formerly led by BSMH serving patients in Florida, Illinois, Kentucky, Ohio, South Carolina and Virginia.
Bon Secours Mercy Health will retain ownership of its hospice house real estate assets in specific locations, while Compassus takes charge of managing the operations.
"We recognize the changing health care landscape and the desire of more patients to have flexible care options, including care in the home," BSMH COO Don Kline said in a news release. "Bon Secours Mercy Health is proud to provide patients and families with comprehensive care options for every stage of life and look forward to continuing to meet their needs through our partnership with Compassus."
4. In February, Nashville, Tenn.-based Ascension Saint Thomas transitioned its home care operations to Compassus.
Ascension Saint Thomas is working with Compassus to administer the home health services its home health line previously provided in Hickman, Benton, Humphreys, Lewis, Williamson, Maury, Dickson and Perry counties.
With the population of Tennesseans ages 60 and older expected to increase by more than 300,000 over the next 10 years, Ascension Saint Thomas believes that more home-based care options will be needed.
"Our patients expect to receive the highest caliber of care, whether they visit one of our hospitals, care centers or receive care in their homes," Ascension Saint Thomas President and CEO Fahad Tahir said. "To meet our mission, we partner with organizations that have the depth and expertise to provide leadership in specific areas of focus such as home health, long-term care, acute rehabilitation, physical therapy and others."