Hospital at Home: A Shift in the Healthcare System

Volume 11, Issue 5, March 13, 2024

By: Jonathan Hadley

We're seeing a notable shift occurring in healthcare. While we have largely focused on how to enhance care delivery within hospitals and other settings where treatments are administered, there is now a growing interest away from receiving care at a provider organization's physical location and toward care at home. This change is driven largely by a combination of technological advancements and the clinical necessity greatly highlighted during the pandemic. These have pushed hospitals and health systems to seek opportunities to extend their reach beyond their walls. 

Telehealth and care management services like remote patient monitoring received significant attention in the early months of the pandemic, but then in November 2020, the concept of "hospital at home" started gaining momentum thanks to the introduction of the Centers for Medicare & Medicaid Services' (CMS) Acute Hospital Care at Home program.  

While we can trace the hospital-at-home model's roots dating to the 90s, its adoption was hindered by reimbursement constraints. With the pandemic bringing or further magnifying challenges like bed shortages, strained and limited staffing, and other resource limitations, CMS implemented the program. Since then, one report analyzing CMS data found that 277 hospitals across 123 systems in 37 states were approved for acute care delivery at home. 

A Closer Look at the Hospital-At-Home Model 

The hospital-at-home model involves providing inpatient-level care to acutely ill patients in their homes. Patients are admitted based on a physician's evaluation. They then receive in-person visits from a registered nurse or paramedic, along with virtual or in-person visits from a physician or advanced practice provider. If timely intervention is needed, the model is designed to give patients immediate access to the care team while the usage of remote monitoring through wearable devices helps inform providers when patients experience concerning shifts in vitals. 

Technology plays an essential role in successful hospital-at-home programs. Platforms are emerging that provide configurable tools to facilitate program implementation, execution, and scaling. These solutions are designed to go beyond traditional data collection, such as by incorporating wearable technologies that deliver real-time, continuous, and secure patient health data collection. Algorithms and analytics enable these solutions to distinguish clinically relevant signals from noise, providing valuable insights through artificial intelligence (AI) and machine learning. 

Reports are emerging that the hospital-at-home model leads to improved outcomes, increased patient satisfaction, and reduced resource usage. For instance, a recent study from Mass General Brigham found "low rates of mortality, less use of skilled nursing facilities, and less need for escalation in patient care" for those patients who received care at home instead of in the hospital. 

What More In-Home Care Means for Home Medical Equipment Providers 

As the future of healthcare demands more care in the home, the demand for home medical equipment (HME) providers will also increase. HME providers are best equipped to provide care delivered in the home.  

As a number of different health systems have launched in-home care programs over the past year, we have seen a trend of them turning to HME providers to assist in setting up additional equipment in the home, train patients and caregivers on how to use the equipment, and help maintain intervention thresholds and measures.  

HME providers have had the infrastructure in place for decades to support the in-home model. Organizations with hospital-at-home programs are identifying this value and increasingly leveraging the network of HME providers and their experience in the patient home setting to capitalize on the benefits of the model.  

How Can VERTESS Help You? 

If you're exploring opportunities to offer in-home services or if you're a home health services or HME provider looking to capitalize on the growing market, now is an opportune time to start discussions about potential partnerships or acquisitions that can help you achieve growth and financial goals. I would welcome the opportunity to speak with you about your situation and how the VERTESS team of healthcare M+A advisors can help. Please reach out! 

Jonathan Hadley

I have a lengthy career in the medical device space. While growing the largest medical device service organization in North America, I served in various positions leading up to CEO. I steered my own company through a successful transaction that launched my M+A career. Through this journey, it enabled me to work directly with all medical device manufacturers (major and new market entries), HME/DME providers across the country, and with many former competitors as I executed upon a national network acquisition M+A strategy.

I am here to support fellow healthcare business owners who choose or are considering the same M+A path I ventured down. In my role as a buyer, I found every transaction to be unique with each seller’s goals differing; however, one common thread was that I ensured they were respected and listened to throughout the entire process.

At VERTESS, I am a Managing Director with extensive expertise in Medical Devices, Medical Manufacturing, and HME/DME support organizations within the US and International marketplace, where I bring hands on experience and knowledge for the business owners I am privileged to represent. I look forward to ensuring you have a positive experience throughout the entire process.

We can help you with more information on this and related topics. Contact us today!

Email Jonathan Hadley or Call: (682)371-6867