Headwinds facing the home-based care market have led a Minnesota agency to discontinue its home care operations.
On Tuesday, Medicare-certified LB Homes announced it would cease providing home care services. Established in 1915, the organization offers a continuum of care focused on serving older adults, including residential nursing care, independent living and transitional care.
Interim Executive Director Heather Hickman stated that the board of directors made this decision after grappling with ongoing staffing shortages, low reimbursement rates and a saturated home care market.
In a statement, Hickman expressed gratitude to home care clients for their trust and support.
“It has been an honor to serve you, and we deeply appreciate the relationship built along the way,” Hickman said in the statement. “As we transition, our commitment remains steadfast in ensuring continued care and support through connections with other home care providers.”
This is not the first time the organization has halted operations in part of its business due to staffing constraints. In October 2021, it suspended its LB Hospice program and transferred patients to other local providers.
Moving forward, LB Homes will concentrate on its core services, which include residential care at the LB Broen Home and independent living at Sheridan House for individuals aged 55 and older.
Hickman stated that these changes will improve the organization’s ability to serve the community.
The number of active home care agencies in the U.S. has decreased since 2014. A 2024 KFF survey found that 43 out of 50 states reported experiencing permanent provider closures.
Significant factors driving closures include the shortage of available caregivers and nurses, increased costs, and cuts in Medicare and Medicaid payments. Other factors include reimbursement model changes, such as the prospective payment system (PDGM) and the conclusion of enhanced federal funding through the American Rescue Plan Act for home care.
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