Last month, Oanh Hang, Lead RN at Homecare & Hospice of the Valley, provided insights into the clinical experience of hospice.
Today, I’d like to share some fun facts related to hospice finance (yes, this topic excites me… sort of).
Even if you’re not a die-hard finance fan, I ask that you still keep reading, having a strong understanding of how we stay financially afloat is critical for the liveIihood of our staff and our patients.
Here we go!
- The government spends $25.7 billion annually on hospice care (approximately 0.52% of total government healthcare spend).
- Hospice care saves ~$3.5 billion annually. With the total costs of care for Medicare beneficiaries who utilize hospice running roughly 3.1% lower than Medicare beneficiaries who did not use hospice.
- Two of hospice’s biggest expenses are labor and mileage reimbursement. For our agency, we estimate our clinicians will drive more than 250,000 miles in 2025, slightly more than the distance from the Earth to the Moon.
- Most healthcare charges fees for specific services. Hospice Is reimbursed per diem (a fixed daily rate), implying that:
- We save money when we minimize waste;
- We have a more predictable source of funding;
- Rising costs are a challenge for hospice care. Hospices do not have the flexibility to set their own price for services. When Starbucks wants to give raises to their employees, they can simply raise the price of coffee. Hospices don’t have this flexibility. We must continuously manage and monitor costs.
And now a more personal note …
I am grateful for the last seven years of my career working in hospice care. Most importantly, I am grateful for the opportunity to integrate into the clinical experience of hospice. When I shadow an admission visit or attend the hospice interdisciplinary meeting, I am reminded that hospice is a world of YET (You’re Eligible Too). The only thing that separates me, and our hospice patients, is time. My relative physical strength will eventually shrink. My mental faculties will fade. And there is a large possibility, at some point in my life, that I will depend almost entirely on others to help with most activities of daily living. This is true for all of us.
Recognizing this truth opens a path to humility. A path to step away from the ego, even for a moment, and really let go. To step away from an inflated sense of self-importance. To let go of grudges. To forgive quicker and ask for forgiveness quicker. To move past petty arguments. quicker. To love more intentionally. To focus my attention on what matters. And let that which does not matter, truly slide.
And yes, death is scary for some. Most people avoid the topic. This is understandable. Death is sometimes scary to me. In those moments of fear, I recall reading a social media thread some years ago, where a user posed the question:
“You wake up having been granted immorality, what is the first thing you would do?”
The top rated answer was “What’s the rush? I would go back to sleep.”
How depressing.
When I reflect on this, I realize what a gift our mortality is. To know that our choices matter because we never know much time we have left.
A sincere thank you to all our hospice, homecare and private duty clinicians — and our administrative teams that support them. It is genuinely noble work.
Peter Schoomaker is chief financial officer of Homecare & Hospice of the Valley.
Hospice of the Valley is an independent, local nonprofit serving Garfield, Eagle, and Pitkin counties. Hospice provides compassionate and dignified care when you or your loved one is facing a life-limiting condition. This Hospice provides end-of-life care that provides comfort for your Mind, Body, and Spirit. Hospice care can be provided at home, at an assisted living facility, at a long-term care setting, or even at a hospital.
Hospice services are available 24 hours a day, seven days a week as needed. The Hospice care team includes: Your personal care physician, a Hospice Medical Director, Registered Nurses, Certified Nursing Assistants, Social Workers, Chaplains, Dieticians, Physical, Speech and Occupational Therapists, Volunteers and Bereavement Counselors. This team provides the support you and your loved ones need so that you can have quality time together and be surrounded with peace, comfort, and dignity. For more information, visit hchotv.org.
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