Q2 2023 Home Health & Hospice Update
Home health and hospice continue to play a pivotal role in payors’ value-based care strategies. Building on the successful completion of UHC’s acquisition of LHC Group earlier this year, the company has now set its sights on acquiring Amedisys in a landmark deal. This pending transaction follows the previously disclosed merger between Option Care Health and Amedisys. Following this announcement, a lead investor in Enhabit Inc. expressed interest to explore strategic alternatives, including exploring a sale. On the regulatory side, CMS continues to exert downward pressure on reimbursement. This June, CMS unveiled its FY 2024 proposed payment rule that includes a 2.2% decrease in aggregate home health payments. The proposed rule has garnered significant backlash from the market, including a federal lawsuit by The National Association for Home Care and Hospice.
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