Healthcare reimbursements often help power organizations; very few patients pay out of pocket. But, reimbursement cuts that could begin as early as the end of 2025 are drawing attention from home health and hospice leadership. While many are taking time to prepare, the uncertainty around the changes can cause frustration and concern.
Remember that reimbursement planning in home health might be changing, but waiting until the last minute to adjust will only make it harder to adapt to shifting rates. Money could slip through the cracks, time will be lost, and daily operations could suffer if you don't take steps to prepare now.
Many teams wait to adjust processes until reimbursement changes feel "real." That delay can cost your organization significant time and energy. Small inefficiencies, like a referral sitting for a day or two longer than it should, an order not being delivered on time, or billing not receiving the right information for a claim, can all add up. And while none of these small delays seem like a big deal on paper, they do negatively impact not only the revenue you bring in but also the patients you serve.
Having a strong financial strategy in healthcare doesn't mean you need to make immediate, drastic shifts in how you work. Instead, you need to identify where your daily processes already have friction and start eliminating those points of tension. Consider adjusting your internal workflows to prevent unnecessary repetition, rework, delays, and confusion during the workday.
A good plan moving forward will include:
When your organization puts these steps into place to build a stronger workflow, you'll be able to support not only better financial stability but also improve the quality of care you provide.
Even though you may not have finalized rules on reimbursements yet, there are steps you can take now to protect your revenue and prepare for any possible cuts.
The first step is to start tracking where delays occur. It's common for delays to hide in plain sight.
Track documents, such as referrals, to improve visibility. Note where there are delays to see where you can improve your processes and prevent small issues from turning into missed revenue.
Another financial strategy healthcare agencies use is eliminating repetition — a time sink that costs extra money. Repetition also increases the risk of mistakes and inaccurate documents that conflict with one another. Identify repeated work to identify the root cause and eliminate it.
Sometimes, a simple fix is enough to smooth out your workflows. Talk to your staff and make small adjustments, such as changing who receives notifications or clarifying intake steps, to create opportunities to reduce delays and achieve meaningful cost reductions. These minor changes can add up, and with proactive planning, they lead to stronger workflows with fewer siloes.
When reimbursements tighten, home health and hospice organizations sometimes look for ways to cut costs and achieve quick savings. However, cutting staff or visit frequency can add up quickly and reduce your quality score or slow down billing. Instead of looking for a quick fix, a better approach is to look for a process fix. Changing your process flows helps strengthen your workflows. You'll improve document accuracy, reduce the number of delays your staff has to deal with, and stabilize the cash you have coming in each month.
Your teams will also have a much more predictable work environment, which means they can get more done with fewer delays. All this leads to better patient care and a happier team in-house.
You don't need to overhaul everything you do, and your workflows don't need to change completely. You do need a plan, though, as you wait for official reimbursement numbers. To prepare, consider improving visibility, reducing repetition in your workflows, and addressing any friction you see now (whether that's through siloes and delays or other issues). By doing these things, you'll position yourself well for home health budget cuts when they eventually arrive in late 2025 or into 2026.
Remember, reimbursement planning will help keep your agency steady even when others might falter. Choose the right tools, set your strategy, and you'll be ready to face the challenges head-on.