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An article in the January Remington Report, “Home Care Mergers and Acquisitions,” reviews last year’s activity and expectations for the coming year. The Remington Report covers “predictions, trends and business and clinical strategies” for homecare executives and clinical managers.
In reviewing hospice’s risk profile, the article says that while there was little activity from the standpoint of reimbursement to affect hospice risk, the “perception of risk edged upwards again in 2005 following a difficult 2004 when the stock prices of several publicly traded providers plunged 50%.” A major difficulty, says the article, was the problem of maintaining cost caps. “Monitoring and maintaining the delicate balance between typically higher profit margin, longer lengths of stay (LOS), non-cancer patients with lower margin, shorter LOS cancer patients to remain under cost limits remains a difficult and speculation-laden task.”
To manage costs, the article says, “Some firms have even resorted to offering incentives to sales reps to identify and bring in shorter LOS patients when threatened with cap exposure. Firms are beginning to scrutinize the markets they are serving, the theory being that the most acute patients tend to cluster around urban markets with hospitals that generally have greater resources to treat the sickest patients, leaving rural markets with a disproportionate number of less acute, longer term patients.”
The author says that the solution to the
problem “may lie in an initiative that many providers fear: moving from fixed daily rates that do not
vary from patient to patient to those that vary based upon patient acuity,” but
that “such a change is not likely to occur over the short term.”
Acquisitions are down slightly from 2004, but the nature of those transactions has changed. Nearly half of the 2004 deals were in excess of $20 million in price, but only one such transaction had occurred in 2005 through September. According to the article, this trend probably reflects that the hospice industry has moved from an initial acquisition phase to smaller, “layer-on” deals and that many hospices have turned toward the home health market.
Hospice valuation models have changed from
capacity-driven to profitability-driven. As a result, the willingness of purchasers to
“pay premium value to enter a market, regardless of a provider’s profitability,
has declined.” “For the first time in a long time,” the author concludes, “valuation
in this sector has declined.” (The
“Making Room for Dying: End of Life Care in Nursing Homes” is another
article in the recent Hastings Report.
Written by
Johnson, who is also Director of the Mayday
Project on Legal and Regulatory Issues in Pain Relief at the American Society
of Law, Medicine and Ethics, begins by saying that 20% of all older Americans
die in nursing homes and another 30% die in hospitals just a few days after
transfers from nursing homes. Those late
transfers,
Over the past few years, nursing homes have reacted to the perception that they are places to warehouse residents until death. Regulators and healthcare professionals have successfully worked at “maintaining, if not improving, the physical, mental and social health of nursing home patients.” In addition to better care, these changes have also helped expose substandard facilities and care “that had once hidden behind routine acceptance of physical and mental decline.”
One unintended result of those efforts is a “death-denying culture” in many nursing homes. Regulatory standards assume that signs of decline are the results of deficiency in care, unless proved otherwise. But signs of decline may also be indicators of approaching death. Risk-averse nursing home administrators may insist on adherence to standards that discourage good care for dying residents.
“Before nursing homes can improve end of
life care, dying will have to find a place in the nursing home culture,”
The challenge,
Another required adjustment is that of “the
general framework for end of life decision-making to better account for the
nursing home context.” The focus of
the current legal and ethical forces in end-of-life care is on the extreme
cases, such as whether persons in persistent vegetative states should receive
nutrition and hydration.
Another focal point for improvement is that
of pain and symptom management. Both
families and health care providers underestimate pain in the elderly,
Regarding feeding tubes,
The article cites three fundamental
assumptions regarding decision-making at the end of life as being “particularly
ill-suited to the nursing home environment.”
In the first place,
Second, the patient is not the only person
who has a stake in dying. Family and
caregivers also are affected and should have a voice. And third, the current legal presumption in
favor of sustaining life by all means gives weight to medical intervention, not
the “individuals life history and values or the more complex goals of care.” It’s time,
Johnson concludes by saying, “Advocates for nursing home residents and those nursing homes in the leadership of best practices have worked hard to dismantle the stereotype of the nursing home as a warehouse for those who are declining into death. This work needs to be protected. However, once dying is recognized as an undeniable part of living – including living in a nursing home – it is clear that the ideal of health promotion will have to embrace care for the dying.” (Improving End of Life Care: Why Has It Been So Difficult?)
Editor’s note: This is one of a series of articles from a recent The Hastings Report, “Improving End of Life Care: Why Has It Been So Difficult?” We will continue the series as space permits.
RESEARCH
* A new PBS series, ”A Lion in the House,” will look at the lives of five pediatric cancer patients and their families over a six-year period. The program, which will be aired on June 21 and 22, “offers an intimate view of patients, families and professional caregivers when a cure for cancer is beyond reach.” Community engagement efforts will be led by NHPCO, NHPCO’s Caring Connections Initiative, the Children’s Project on Palliative/Hospice Services, the Independent Television Service and other organizations. PBS information is available at www.pbs.org/independentlens/lioninthehouse. (NHPCO NewsBriefs; 2/2; PBS Website)
*
* The International Journal for Quality in Health Care recently reported on a study that evaluated “measures that could use administrative data to assess the intensity of end-of-life cancer care.” The standards were drawn from the Medicare claims of nearly 50,000 patients who died between 1991 and 1996. Researchers say that the usefulness of the standards “will depend on whether the concept of intensity of care near death can be further validated as an acceptable and important quality issue among patients, their families, health care providers, and other stakeholders in oncology.” (Cancer Weekly, 1/31)
* Since her mother’s
diagnosis with lung cancer seven years ago,
* The
*
* On March 8,
* A growing number of
estate-planning attorneys are including religion in their discussions with
clients. Martin M. Shenkman,
who has been discussing spiritual values with his clients for the last 20
years, says that attorneys who don’t do so are “shortchanging their clients.” (
Correction: The January 31 issue of HNN, number 5, was incorrectly dated as January 21.
Thanks to
Glatfelter Insurance Group is the national sponsor of Hospice News Network for 2006. Glatfelter Insurance Group provides property and liability insurance for hospices and home healthcare agencies through their Hospice and Community Care Insurance Services division. Ask your insurance agent to visit their website at www.hccis.com.