Say the words "health care" and many listeners will envision antiseptic-smelling hospital towers and multi-specialty medical clinics with stadium-capacity parking lots.
But the reality is that a lot of health care is delivered outside these large-scale (and well-funded) settings. And with calls to control health care spending growing year by year, many observers think more health care will be directed to cheaper, nontraditional settings — especially the home.
However, another major problem in health care is billing fraud, especially for the federal Medicare program for seniors and the federal- and state-funded Medicaid program for lower-income residents.
Auditors say that Medicare probably paid more than $52 billion in improper payments in 2017. And the proportion of improper payments in Medicare's home health care program is believed to be particularly high, with an "error rate" of more than 50% in 2014.
Those are major reasons why, when Congress passed sweeping legislation in 2016 known as the 21st Century Cures Act to speed up medical innovation, lawmakers also included a provision requiring providers of home health care and personal care services to electronically verify their locations by phone or GPS. Rather than mandating a one-size-fits-all approach, Congress left it to each state to figure out how to have their providers meet the requirements for "electronic-visit verification," beginning next year for some providers.
For small providers on tight budgets, this mandate could become one more technological hurdle, said Jamal Abdulahi, president and CEO of Minneapolis-based electronic health services firm FandF Health.
"We talk about home health care agencies — everyone would agree that the future of health care is in the home. But these are organizations that run on very thin margins," Abdulahi said. "And they have been ignored simply because the margins to make a big technology solution isn't perceived to be there."
FandF Health Inc., headquartered just south of the West Bank campus of the University of Minnesota, was formed in 2017 with the intention of offering electronic services to health care entities including smaller providers that might have a hard time affording the costly services sold to big health care systems. Electronic-visit verification is one aspect of the service, which can be "bundled" with other digital offerings such as electronic billing and coding for medical and dental services, and automation of documentation services.