HCHB analysis and newly released dashboards reveal the potentially devastating impacts of cuts proposed by CMS, calling for revisions to safeguard access, quality and provider viability
DALLAS, Aug. 28, 2025 /PRNewswire/ -- Homecare HomebaseSM (HCHB), the leading software provider for home-based care, has submitted a comment letter to the Centers for Medicare & Medicaid Services (CMS) regarding the CY 2026 Home Health Prospective Payment System Proposed Rule. Drawing on its nationwide client base that represents nearly half of all Medicare home health visits, HCHB's analysis shows that the proposed changes would exacerbate access challenges, financial strain and workforce pressures across the industry.
HCHB's letter spotlights several critical concerns that risk increasing challenges across the home health sector:
- Declining Access to Care: Referral conversions have dropped 13% since 2018, with more than 4.2 million patients denied care in 2024
- Flawed Behavior Assumptions: CMS's projections that agencies shift coding or therapy practices for payment are not supported by HCHB data
- Rising Costs vs. Shrinking Rates: Since 2018, inflation has risen 27% while revenue per patient day has grown only 13%
- Medicare Advantage Pressures: Medicare Advantage now represents the majority of home health patients but pays less, adds administrative burdens and leaves providers with unsustainable margins
- Cost Report & Pandemic Data Issues: CMS's reliance on inconsistent cost reports and pandemic-era anomalies distorts policymaking; HCHB calls for resetting baselines to 2023
"Home health has never been more essential to the healthcare system, but the gap between costs and reimbursement continues to widen," said Luke Rutledge, president of Homecare Homebase. "Our goal is to partner with CMS and the broader industry to ensure that regulatory decisions sustain access to this vital benefit for patients and families across the country."
The comment letter highlights that CMS's proposed 6.4% overall payment reduction for 2026 will compound existing financial strain. HCHB's dataset, covering 47.1% of the home health industry, shows disconnects between CMS's perception and provider realities, including:
- Referral declines due to staffing shortages
- Revenue stagnation despite rising inflation
- Unsustainable Medicare Advantage reimbursement levels
Earlier this summer, HCHB unveiled its 2026 Home Health Impact Model alongside a suite of Advocacy Dashboards within HCHB Analytics. These tools enable providers to quantify the proposed rule's financial and operational impacts on their individual agencies. The dashboards also surface referral conversion trends, inflation vs. reimbursement comparisons and clinical group behavior data, providing agencies with evidence to both prepare for changes and support advocacy efforts.
As the home health sector awaits CMS's final rule, HCHB continues to serve as both an advocate and innovator, leveraging comprehensive data at scale to inform public policy and help its customers make confident, evidence-based decisions. This latest comment letter represents a firm stance on preserving the quality and accessibility of home health care, ensuring patient and agency needs remain at the center of regulatory decisions.
To learn more about Homecare Homebase's advocacy efforts, visit hchb.com.
About Homecare Homebase, LLC
Founded by industry veterans in 1999, Homecare HomebaseSM (HCHB) is a Dallas-based software leader empowering exceptional home-based care through hosted, cloud-based technology solutions and administrative services. HCHB's customized mobile solutions enable real-time, wireless data exchange and communication between field clinicians, physicians and office staff for better care, more accurate reporting and improved revenue cycle management. HCHB's products and services streamline operations, simplify compliance and boost clinical and financial outcomes for home-based care agencies. Each year, over 300,000 HCHB users serve approximately one million patients daily, resulting in over 121 million annual visits. Homecare Homebase is a Hearst Health company. For more information, visit www.hchb.com or call us toll-free at 1-866-535-HCHB (4242).
About Hearst Health
The mission of Hearst Health is to guide healthcare organizations by delivering essential intelligence and software that improve the quality, safety and efficiency of care. Hearst Health has been innovating with care for more than 40 years, with a commitment to making a lasting positive impact on health. The Hearst Health companies — FDB, Homecare Homebase, MCG, MHK, QGenda and Zynx Health — elevate care by informing and empowering participants across the health journey. To learn more, visit www.hearst.com/hearst-health and follow @Hearst Health on LinkedIn.
SOURCE Homecare Homebase

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