Navigating the Shifting Sands of Home Healthcare

Fourteen years ago, Team Select Home Care began as a traditional Medicare home health agency. However, recognizing the increasing challenges within that sector – particularly the looming threat of substantial Medicare rate cuts – the company embarked on a dramatic overhaul. Two years ago, they divested their home health business to Humana Inc. (NYSE: HUM), a strategic decision that paved the way for a complete focus on long-term care.

Today, Team Select Home Care operates exclusively within the long-term care space, delivering services directly to patients’ homes. This focused approach, coupled with other key initiatives, has resulted in a doubling of the company’s business. “By divesting those other divisions, we were able to laser focus and be great at long-term care,” explained Fred Johnson, CEO and president of Team Select Home Care. “We analyzed the trajectory of both Medicare home health and pediatric long-term care, assessing the competitive landscape to identify where we could have the greatest impact.”

The decision wasn’t taken lightly. Medicare-certified home health care providers are facing unprecedented financial strain, largely due to consistent and increasingly severe Medicare rate cuts. The proposed 2026 home health rule, described as the largest cut ever proposed, underscores the urgency for providers to adapt and innovate.

Building a Foundation for Growth: Pediatric Long-Term Care

Fred Johnson’s vision for Team Select Home Care began to take shape when he joined the company in 2015 as CFO and vice president of operations. He spearheaded the creation of the company’s pediatric long-term care division, a pivotal step that ultimately defined its current business model. This early investment proved prescient, positioning Team Select as a leader in a growing and underserved market.

Headquartered in Phoenix, Arizona, Team Select Home Care now serves both medically complex pediatric patients and seniors in the comfort of their homes. Operating across 16 states, the company has become one of the nation’s largest pediatric long-term care providers. This growth was further bolstered by a strategic investment from private equity firm Court Square Capital Partners in 2023, providing capital for continued expansion and innovation.

Currently, approximately 65% to 70% of Team Select’s services are dedicated to pediatric care, with the remaining 25% to 30% focused on senior care. This specialization allows the company to develop deep expertise and tailored solutions for each patient population.

Rapid Expansion and the Power of De Novos

Team Select Home Care has experienced remarkable growth, boasting an average compound annual growth rate of 53% between 2017 and the present. A key driver of this success has been the company’s aggressive strategy of establishing “de novos” – new branch locations – across its service area. “We consistently plant six to 10 new de novos a year,” Johnson stated. “While it takes a couple of years for these locations to reach full maturity, we are now reaping the benefits of those earlier investments.”

But growth isn’t solely about physical expansion. Technology plays a crucial role. Team Select Home Care has invested heavily in data analytics, performance metrics, and outcome tracking. This data-driven approach has enabled the company to secure favorable reimbursement rates, particularly in managed care states like Florida and Texas. By consistently achieving hospitalization rates less than half the industry average, they’ve demonstrated significant value to payers.

AI-Powered Predictive Hospitalization Tool

Team Select Home Care’s commitment to technological innovation extends to the development of a cutting-edge, AI-powered predictive hospitalization tool. This tool analyzes real-time changes in patient condition to identify children at high risk of hospitalization, allowing for proactive intervention and potentially preventing unnecessary emergency room visits.

Johnson believes this tool will be a game-changer, not only improving patient care but also strengthening relationships with children’s hospitals, which often struggle with discharge planning. “In the pediatric industry, only about 65% of required care hours are filled, leaving 35% of families struggling to find adequate support,” he explained. “We can help bridge that gap and get children home faster, with the appropriate level of care.” This technology is expected to attract preferred provider status and further solidify Team Select’s position as a leader in pediatric long-term care.

What role will artificial intelligence play in the future of long-term care, and how can providers prepare for this technological shift? How can home healthcare agencies balance technological innovation with the essential human touch that patients and families rely on?

Frequently Asked Questions About Team Select Home Care