Industry Financial Performance Survey Finds Good and Bad News
The American Association for Homecare (AAHomecare) 2003 Financial Performance Survey Report, released last month, contained some good news for the home health care industry. According to the survey, last year, overall accounts receivable days outstanding fell 2% from 2001 to 83 days. However, the percentage of receivables over 120 days remained high at 24%, says William Cron, who authored the report.

Compiled from questionnaire responses from about 25% of AAHomecare’s membership and based on data from 2002 operations, the survey also found that home health care company revenues rose slightly to 11%, up 1% from the previous year.

The 8% of participating companies that reported making an acquisition experienced an overall growth rate of 22% (up from 16% in 2001). However, their average growth rate for continuing business was 9%, closer to the industry average, according to AAHomecare.

The contents of the entire study, including additional profit statistics and industry financial data, can be purchased by AAHomecare member for $250 and by nonmembers for $500. Call (703) 836-6263 to order.

CMS Updates Medicare Coverage Decision Process
The Centers for Medicare and Medicaid Services (CMS) is endeavoring to be more efficient in its process for making national coverage determinations (NCDs) under the Medicare program.

CMS Administrator Tom Scully says the updated and improved process—published in a notice in the Federal Register on September 26—will ensure that CMS has access to all relevant information to make decisions.

CMS says the improvements include:
    • Instituting a separate process, with more rigid time frames, for beneficiaries who qualify as aggrieved parties under section 522 of Benefits Improvement & Protection Act of 2000 (BIPA).
    • Revising, formalizing, and updating the elements that constitute a complete, formal request to reflect best practices.
    • Making it clear that all evidence currently available must be adequate for    CMS to conclude that the item or service is reasonable and necessary.

“Our goal is to make the latest advances in medical care available to Medicare beneficiaries more rapidly, while making evidence-based decisions that safeguard the health and safety of patients,” Scully says.