In this insightful exploration, we delve into the financial intricacies and profound human impact of hospice care. Through the lens of a seasoned healthcare professional, Oanh Hang, Lead RN at Homecare & Hospice of the Valley, and Peter Schoomaker, CFO, we uncover how hospice services not only provide compassionate end-of-life care but also operate within a unique financial framework. The article highlights the importance of understanding hospice finances for sustaining both staff livelihoods and patient care. It reveals that while hospice saves billions annually, it faces challenges in managing costs due to its fixed reimbursement model. Finally, it reflects on the personal and philosophical insights gained from working in hospice, emphasizing humility and the value of mortality.
Financial Insights and Human Touch: The World of Hospice Care
In the heart of Garfield, Eagle, and Pitkin counties, an independent nonprofit organization offers compassionate end-of-life care to those facing life-limiting conditions. This service, provided by Hospice of the Valley, operates under a unique financial structure. Each year, the government allocates $25.7 billion for hospice care, which represents about 0.52% of total healthcare spending. Remarkably, hospice care saves approximately $3.5 billion annually, with Medicare beneficiaries utilizing hospice services experiencing 3.1% lower overall care costs compared to those who do not.
Hospice's largest expenses are labor and mileage reimbursement. For instance, clinicians at Hospice of the Valley are expected to cover over 250,000 miles in 2025—equivalent to the distance from Earth to the Moon. Unlike other healthcare providers who charge per service, hospice operates on a per diem basis, receiving a fixed daily rate. This model ensures predictable funding but also presents challenges in managing rising costs. Hospices cannot simply raise prices like retail businesses; they must meticulously monitor and manage expenses to maintain sustainability.
Beyond the numbers, hospice care is a deeply human endeavor. Peter Schoomaker, reflecting on his seven-year career in hospice, emphasizes the humility and perspective that come from recognizing our shared vulnerability. He notes that everyone will eventually depend on others for daily living, and this realization fosters empathy, forgiveness, and intentional love. Mortality, often feared, becomes a gift when seen as a reminder of the importance of our choices and time.
A sincere appreciation goes to the dedicated clinicians and administrative teams who make hospice care possible. Their work, providing round-the-clock support through multidisciplinary teams, ensures that patients and their families experience comfort, dignity, and peace during challenging times.
From a reader's perspective, this exploration of hospice finance and philosophy serves as a powerful reminder of the interconnectedness of life and death. It underscores the importance of valuing every moment and approaching our lives with humility and intention. Hospice care, with its blend of compassion and financial prudence, exemplifies the noblest aspects of healthcare, reminding us all of the preciousness of time and the significance of our actions.