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While the home health care industry faces pressure to sustain margins while innovating care models and reimbursement arrangements, technology has emerged as the critical lever that enables providers to do so – even as tech tools require investments of their own.
Uncertainty within the industry, such as that caused by the proposed CY2026 Medicare home health payment rule in 2025, underscores the imperative for providers to evolve their organizations through AI.
“When we start talking about, ‘Can we afford major innovations?’ – we must innovate,” Phillip Ward, chief operating officer at Alivia Care, said at Home Health Care News’ FUTURE conference. “We must transform. We must have an eye on the future of 2030 rather than just saying,’ I can’t invest now in a fee-for-service world. Well, if you’re trying to protect a fee-for-service world, I think the viability over the next five years is going to be very questionable at best.”
Jacksonville, Florida-based Alivia Care is a nonprofit that operates across Northern Florida and Southern Georgia. Its services include home health care, hospice care, personal care, palliative care and Program of All-Inclusive Care for the Elderly (PACE) care.
For providers making technology investment determinations, there is “a price for getting it wrong,” according to Andrew Olowu, chief technology officer at Axxess.
Axxess is a global technology platform for health care at home serving over 9,000 home health, home care, hospice and palliative organizations.
Providers must consider long-term cost savings, as new AI technologies have downstream cost-saving potential.
“You can experiment,” Olowu said. “You can see whether this works or not, and you can adapt it and improve your workflow. But if you decide not to make the investment, you’ll keep doing the same thing, and you’ll get the same outcome.”
There are some “no-brainer” places to implement technology, according to David Jackson, founder and CEO of Choice Health at Home. For Jackson, automating revenue cycle and intake is among those no-brainer applications. The company has seen costs decline since implementing these technologies.
“Those are non-patient-facing positions,” Jackson said. “We’ve enabled people to practice at the top of their license. They’re excited about coming into work. They’re making real decisions instead of just data entry. So that’s those types of projects. I just encourage you to embrace.”
Tyler, Texas-based Choice Health at Home provides home health, hospice, personal care and rehabilitation services in seven states. The company recently acquired three home-based care organizations: Cy-Fair Health Care, Alliant Home Health, Palliative and Hospice Care and Senior Nannies Private Care.
For Ward, the exciting innovation involves electronic medical records (EMRs). These platforms now assist clinicians, rather than just serving as compliance and clinical documentation, creating a mind shift in how the industry innovates.
The practical side
While technology is rushing forward, ushering the home-based care industry into a new era, practical considerations still must be made. With slim margins, investments in technology must have demonstrable ROI and avoid being based on the “shininess” of the tool.
“When you talk about [AI], … what we’re talking about is the discipline to say, ‘What is the problem that I’m solving?”’ Ward said. “Is it a shiny object, or is it a solution? Because we can get very excited about the capabilities of AI, but we know that we’ve got these problems that we have to address.”
Alivia asks three questions about AI investments, Ward said: how it affects the experience, how it impacts costs, and how it impacts the actual outcomes and quality of care.
When identifying a problem, Jackson brings the problem to multiple vendors and tells them that Choice wants to test their product. The leader then takes feedback from employees when making a final selection, which improves adoption and agility, he said.
AI tools should ultimately have people at their heart, according to Olowu. Providers should opt for tools that increase productivity, reduce repetitive tasks and allow workers to focus on high-value work.
While making careful considerations regarding which technology tools to embrace, embracing technology is essential. Jackson recommended that executives lean on their chief technology officers to ensure the protection of their data, but that they “lean forward” to embrace technology.
“There are going to be winners and losers when you have these rapid jumps in technology,” Jackson said. “My job as CEO is to really lean forward. … That’s just an imperative right now. You’ve got to lean forward and try to pick the winners, but you’re going to have to experiment to find how to best enable your clinicians.”
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