Health Care System: Article Analysis
I choose this article because it is an important part in the health care system. People are switching the way they view healthcare. People would rather have someone come to them rather than driving to the hospital to get care. Many people believe that treating patients in their homes will be a lot cheaper than having patients go to the hospital. This switch could save billions of dollars. We need to look at different ways of saving money because the U.S. spends the biggest percentage of money on healthcare compared to all the other countries in the world. One way of saving money is to switch to home care but it has to be regulated properly otherwise companies will take advantage of the system costing us even more money.
This …show more content…
But an analysis by The Wall Street Journal of Medicare payments to home health-care companies in recent years raises questions about whether some companies—including the sector's largest, Amedisys Inc.—are taking advantage of the Medicare reimbursement system. The results show that the number of in-home therapy visits tracks Medicare financial incentives.
Founded in 1982 by William Borne, a 52-year old registered nurse, Amedisys derives 90% of its revenue from Medicare reimbursements. As Medicare spending on home health surged over the past decade, the company has seen its sales skyrocket with revenue of $1.5 billion last year, up from $88 million in 2000. Among health-care stocks, Amedisys has been a star, soaring to $60 a share yesterday from less than $1 in …show more content…
Thus, it received more bonuses.
Steven Guenthner, chief financial officer of Almost Family, said that when Medicare revised its reimbursement rates in 2000—creating a bonus of about $2,200 for patients reaching 10 therapy visits—the policy had "a serious flaw." The rates encouraged home health agencies, including Almost Family, to seek out patients who had illnesses that required at least 10 visits, Mr. Guenthner said. Almost Family focused on hip and knee problems because those patients tend to need 10 to 13 therapy visits, he said.
Illnesses that require fewer visits may not get as much attention under the Medicare reimbursement rules. "It's not that we turned down patients," Mr. Guenthner said. "It's where you focus your scarce resources." The combination of limited home health resources to attract patients and the government's reimbursement policy "was like a moth to a flame," he
This …show more content…
But an analysis by The Wall Street Journal of Medicare payments to home health-care companies in recent years raises questions about whether some companies—including the sector's largest, Amedisys Inc.—are taking advantage of the Medicare reimbursement system. The results show that the number of in-home therapy visits tracks Medicare financial incentives.
Founded in 1982 by William Borne, a 52-year old registered nurse, Amedisys derives 90% of its revenue from Medicare reimbursements. As Medicare spending on home health surged over the past decade, the company has seen its sales skyrocket with revenue of $1.5 billion last year, up from $88 million in 2000. Among health-care stocks, Amedisys has been a star, soaring to $60 a share yesterday from less than $1 in …show more content…
Thus, it received more bonuses.
Steven Guenthner, chief financial officer of Almost Family, said that when Medicare revised its reimbursement rates in 2000—creating a bonus of about $2,200 for patients reaching 10 therapy visits—the policy had "a serious flaw." The rates encouraged home health agencies, including Almost Family, to seek out patients who had illnesses that required at least 10 visits, Mr. Guenthner said. Almost Family focused on hip and knee problems because those patients tend to need 10 to 13 therapy visits, he said.
Illnesses that require fewer visits may not get as much attention under the Medicare reimbursement rules. "It's not that we turned down patients," Mr. Guenthner said. "It's where you focus your scarce resources." The combination of limited home health resources to attract patients and the government's reimbursement policy "was like a moth to a flame," he