Humana Collabs with DME Companies to Advance Value-Based Home Healthcare

Humana has entered value-based agreements with two durable medical equipment organizations to improve home healthcare services for Medicare Advantage members.

The organizations, AdaptHealth Corp. and Rotech Healthcare Inc., will start providing durable medical equipment services to Medicare Advantage health maintenance organization (HMO) members beginning on July 1.

The partnerships reflect Humana’s goal to unify the sourcing of durable medical equipment and create a more coordinated experience for Medicare Advantage HMO members and the providers who care for them.

According to the payer, the collaboration will allow members to receive a higher level of service that will improve health outcomes, while providers will benefit from a simplified and timely process of ordering and receiving medical equipment.

“Partnering with national DME partners under a value-based arrangement aligns with our goal to enhance access to the home care services we provide to patients across the country,” Kirk Allen, senior vice president of Home Solutions at Humana, said in the press release.

“We’re excited about the partnerships we’re announcing today because working with these organizations on a national level will help us streamline and simplify our efforts to get Medicare Advantage HMO patients the equipment they require with best-in-class service, while empowering healthcare providers to more efficiently fulfill their patients’ DME needs. These deeper relationships will also enhance our ability to deploy clinical programs aimed at reducing hospitalizations for our members.”

The agreements further Humana’s commitment to expanding value-based care within its home healthcare services. The health plan aims to build a comprehensive value-based home healthcare offering that covers 40 percent of Humana Medicare Advantage members by 2025, according to the press release.

Humana and the durable medical equipment organizations are in the process of notifying Medicare Advantage HMO members about the transition. Additionally, the organizations will directly contact members who currently receive durable medical equipment services to ensure their needs are met when the new contract begins.

The value-based partnerships will only pertain to Humana Medicare Advantage HMO plans and do not apply to Humana Medicare Advantage members enrolled in preferred provider organization (PPO), private fee-for-service, Medicaid, commercial, or TRICARE plans.

This is not the first collaboration Humana has initiated to help advance value-based care for its members. The payer recently partnered with an independent primary care network to improve access to value-based care.

The 10-year partnership with Aledade will allow Medicare Advantage members to receive value-based primary care from in-network Aledade-enabled physicians. The agreement includes a pathway to full risk and will be phased in for current and new statewide agreements.