Home care worker shortages threaten push for value-based healthcare
MASSACHUSETTS, UNITED STATES — As healthcare costs rise with an aging population, Johns Hopkins University, Aetna, and Massachusetts unveiled initiatives to recruit and train more non-medical home care workers—emerging as crucial players in reducing expenses under value-based care models.
Home care workers vital to cost-effective, value-based care
With 3.9 million workers currently providing personal care services such as bathing, meal preparation, and grooming, their frequent interactions allow them to detect health declines early, says Kristen Wheeler, Executive Director of Home Care for the National Alliance for Care.
“They will be the first to recognize when something has changed. These caregivers can report back and are a critical part of the healthcare team,” Wheeler said.
Programs such as Johns Hopkins University’s Neighborhood Care Pathways work to build the workforce by guiding caregivers to find and report signs of complicated chronic illnesses.
Neighborhood Care Pathways Director Quincy Samus, who oversees the program, believes that investing in these workers would likely reduce the number of hospital trips for high-need patients.
Workforce shortages threaten industry growth
Despite their value, home care agencies struggle with high turnover due to low wages averaging $17 per hour and competition from retail and hospitality.
Staffing gaps cost companies millions; Ally Home Care lost hundreds of thousands in revenue last year, Chief Executive Officer (CEO) Robin Tam revealed. Turnover also leads to unserviced hours, with Tam estimating 20% of contracted care goes unmet, a third due to staffing issues.
To combat these problems, Aetna is piloting a $250,000 retention program with MissionCare Collective, testing an engagement platform to reduce turnover. Tam hopes the tool could boost billable hours by just 2%, adding $50,000 annually per location.
Meanwhile, states like Massachusetts are investing $2.5 million in training to attract new workers, recognizing that stabilizing this workforce is essential for cost-effective care.
