“Brooklyn-based Metropolitan Jewish Home Care, doing business as MJHS Home Care, plans to lay off more than 100 employees amid significant business challenges,” writes Crain’s New York Business, quoting HCA on some of the financial challenges faced by the industry. See the report here.
“Certified home health agencies have been especially vulnerable to costly mandates, inadequate payor rates and exposure to systemwide volatility in the home and community-based marketplace,” said Roger Noyes, director of communications at the Home Care Association of New York State, in an email.
For instance, an analysis from the association found that home care agencies reported it takes 58 days on average to collect money from payers. Additionally, as of 2017, 72% of certified home health agencies had negative operating margins, Noyes said, adding that 61% of agencies’ Medicaid service volume is derived from contracts with managed long-term care plans, which are particularly financially vulnerable in the current market.
“Thus, the state’s rate shortfalls to MLTC plans have caused fiscal instability across the entire home and community-based system, as plans and their network contractors alike shoulder unsustainable losses,” Noyes said.