Hawaii agencies close their doors

In the past year four Hawaii home care agencies have been forced to close their doors. Now Straub Home Health Agency, a division of Straub Clinic and Hospital, joins those ranks. Citing decreased reimbursements — a 24% decrease not including an additional 15% reduction once the prospective payment system goes into effect — and the implementation of Outcome and Assessment Information Set, the agency feared its quality of service would suffer.

Reavis HomeCare of Round Rock, TX, closed for similar reasons, predominantly the decrease in Medicare reimbursements. At one point, Reavis counted itself as one the country’s four largest home care agencies, with six branch offices and nearly 200 employees. As a result of the agency’s intermediary miscalculating Reavis’ reimbursements, the company was notified that it owed $1.3 million to Palmetto Blue Cross and Blue Shield, a figure that was eventually lowered to $750,000.