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A New Dawn For Home Health Care


The home health IT sector is on fire. From the groundswell of “quantified self” wearable devices to more and more medical tests becoming consumerized in easy to use, portable form factors.

Worldwide revenue for home health care devices and services will rise to $12.6 billion in 2018, up from $5.7 billion in 2013, according to a report from IT research firm IHS Technology, and this trend is starting to make headlines.

In the institutional healthcare space, payers have taken note of the efficiency of remote monitoring as a means to reduce re-admissions and improve patient outcomes.

Meanwhile, the quantity of patient-generated data will grow exponentially with the increasing use of home health technologies.

Big data in health care will determine the success of population health management, which the report said is essential to the business model of accountable-care organizations and their objective of providing value-based care.

These trends, taken together, will transform the business model for homecare agencies in the next decade. AlayaCare sees early warning signs of a shift from fee-for-visit/service business models to capitated payment systems by which homecare agencies charge a subscription fee per patient, with the amount varying by condition, complexity, and acuity.

With profitability in today’s model squeezed between declining reimbursements and wage increases demanded by practitioners, this may not be bad news for agencies.

Not everyone will successfully make this transition, but those that do should see improved operating conditions as they access profit pools enabled by adoption of this new technology.

As with any paradigm shift in an industry, the future will belong to the nimble. The AlayaCare platform is designed to allow this agility. We look forward to the journey.