Lawmakers
put brakes on
home health

By NICOLE CARTRETTE

Lawmakers want a hold on home health licenses.

With the governor’s signature they will get it.

Senate bill 1280 calls for the Department of Health and Human Services to stop issuing licenses for new home care agencies that plan to offer in-home aide services.

Only certified agencies and agencies that need a new license for an existing agency being acquired may be issued licenses after Jan. 1, 2007 and for a period of one year.

“This will allow the Department the time necessary to implement newly adopted home care rules,” the legislation states.

Licenses were issued to 252 agencies in the state last year and brought in more than $88,000 in fee revenue, a fiscal note attached to the bill reads.

Rep. Dewey Hill said there was little discussion on the floor of the House regarding the bill that originally dealt with only a pilot program to study cost savings with remote patient monitoring.

Steve Smith, who runs a private healthcare company, said that although there are 1,300 licensed home health agencies in N.C., the state has not funded proper oversight. The legislation is needed to study ways to improve enforcement of regulations, he said.

He said he is concerned with the quality of service provided by new upstart agencies with no experience.

“They are cutting corners,” Smith said, citing examples of agencies that use questionable recruitment practices and “create havoc in the industry.”

Smith, who suggested the county get out of the home health business recently, insists that the issue is not that the group doesn’t want competition.

He doesn’t think the legislation, if enacted, will create a shortage.

“We have ample numbers of home care agencies,” he said. “We don’t need any more.”

The Association for Home and Hospice Care of N.C., a non-profit of more than 560 licensed agencies across the state, was a big supporter of the legislation.

Smith said high Medicaid enrollment east of Interstate 95 contributes to the rapid growth of home care agencies in the area.

The county-owned Columbus County Home Health brings in about $1 million a year.

More than 30 home health agencies have offices in Columbus County.

Twenty-seven are located in Whiteville, according to the Department of Health and Human Services Division of Facility Services.

Several out-of-county agencies provide services in Columbus County also.

Home care is paid for through Medicaid, Medicare, private insurance and patients.

Not all agencies are Medicare or Medicaid service providers. An agency may be able to bill Medicaid for part of their services, but not all, and some agencies may be able to bill Medicaid but not Medicare, Kim Smith, Columbus County health director said.

Medicare or Medicaid, for example, may pay for personal care services such as bathing and feeding for patients who meet certain criteria.

Light housekeeping or other services that some agencies provide in conjunction with medical services may have to be paid for privately.