Home Health: GAO targets the tail, public hospices sit near US average

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Home Health: GAO targets the tail, public hospices sit near US average

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Home Health

GAO targets the tail, public hospices sit

near US average

Initial Opinion

GAO reports adds to recent hospice headlines 11 June 2026

The US Government Accountability Office (GAO) report (issued 6/9/26) calls for changes Equity

to the Medicare hospice reimbursement given perceived overpayments. This fits into the United States

recently accelerated rhetoric around fraud and abuse in hospice. We don’t expect HC Facilities

immediate changes since moving from a per-diem to per-visit model would require Kevin Fischbeck, CFA

Congressional action, and it is unclear to us Congress wants an outright cut to hospice Research Analyst

spending (GAO math implies a 45% cut). However, the GAO analysis could prompt CMS BofAS+1 646 855 5948

to make tweaks to hospice reimbursement and increase scrutiny, creating uncertainty. kevin.fischbeck@bofa.com

On a visit per week basis, CHE (hospice is 65% of revs), ADUS (18%) and BTSG (4%), Joanna Gajuk

Research Analyst

screen close to the US average, making them less exposed to targeted actions. Overall, BofAS

while hospice scrutiny will remain elevated, we do not expect the publics to be materially +1 646 855 3961

joanna.gajuk@bofa.com

impacted by the increased oversight and recently announced moratorium.

Craig Jones

BofASGAO argues that a per-diem system drives overpayment +1 646 743 2020

The key message from the GAO is that hospice payment system overpays low-intensity craig.jones3@bofa.com

providers by design since it pays a daily rate even if there was no visit that day. We Joaquin Arriagada Martinez

would expect more audits and documentation scrutiny, enhancing the ongoing efforts. Research Analyst BofAS