How PDGM Will Affect Non-Medical, Private Duty Home Care Agencies
PDGM will send ripples throughout the healthcare continuum. Here’s what some of those ripples are going to look like for non-medical home care providers.
First, referral partnerships are likely to be affected drastically. Home health providers are a key source of referrals to private duty agencies; according to the 2019 Home Care Benchmarking Study, they were the #2 referral source for home care agencies, surpassed only by current and past clients.
Many private duty providers are likely to see the referral landscape shifting under their feet as home health partners go bankrupt or make shifts to their strategies.
These partnerships may look drastically different in cases where smaller, locally-based home health agencies go bankrupt or are acquired by larger companies to ensure survival. While each case will be different, it’s likely that these changes will benefit the private duty agencies who have entrenched partnerships with established companies who provide multiple types of care across the continuum, especially those that are facility-based.
Second, some experts, including members of Home Care Pulse’s leadership team, believe that this presents a growth opportunity for private duty agencies. As clients are displaced by their home health agencies going of business, private duty might end up picking up some of the slack in instances where proactive basic-needs care is adequate in the short term.
Additionally, private duty agencies looking to move into home health should recognize that the home health space just got more complicated and more difficult. Experts interviewed by Home Health Care News have predicted that home health startups will become a thing of the past with these new changes.
Our team is unconvinced that moving into the home health space as a private duty agency will become impossible, but it’s important to become familiar with how the landscape will change and what this will require on your part. Ultimately, no one can say for sure what kind of impact on private duty PDGM will have.