The National Association for Home Care & Hospice (NAHC) filed a lawsuit against the Department of Health and Human Services (HHS) over a payment system that has significantly reduced reimbursements for home health agencies since its implementation in 2020. However, the US District Court for the District of Columbia dismissed the lawsuit on April 26, citing the plaintiffs’ failure to exhaust their administrative remedies.
The court ruled that the NAHC skipped the agency’s process for seeking expedited judicial review, leading to the dismissal of the case. Moving forward, home health agencies affected by the payment system will need to explore other avenues for addressing their concerns. The ruling highlights the importance of exhausting all administrative remedies before pursuing legal action, as skipping steps in the process can lead to unfavorable outcomes in court.
Despite NAHC’s own motion being denied, home health agencies may need to work within the existing framework or advocate for changes through other channels to mitigate the impact of reduced reimbursements. As such, it is crucial that they understand and navigate this new system as effectively as possible while also exploring alternative solutions that can help them maintain high-quality care for their patients.
