Skip to main content

The role of home health in the pandemic and beyond

WHEB Headshots 27
Home health 1024x683 1

The COVID-19 pandemic has put enormous strain on the healthcare sector globally. In England alone, there are almost 5.5 million patients waiting for routine hospital treatment.1 The elderly in care homes have been hit especially hard by the coronavirus. Many now fear moving into a care home, having seen the elevated mortality rate at care homes due to COVID-19.

During the pandemic, home health has been promoted to pick up non-critically ill patients so they can be discharged from hospitals faster and have care at home instead. “Hospital at home” is another emerging trend, which gained traction as hospitalisations have risen. It enables some patients to receive acute care in their homes, rather than in a hospital.

Home health is a preferred option


People prefer to receive treatment and care at home. 9 out of 10 people aged 65 or above would choose to be supported at home, rather than in a care home.2 COVID-19 has further exacerbated this preference given the frightening impact of the pandemic on care homes. Home health services offer a variety of care regimens. These include physical therapy, occupational therapy and speech therapy. Several studies show that home health improves clinical outcomes and reduces hospitalisation rates. Dementia patients particularly benefit from care at home as they need familiarity. Those who live at home have a better quality of life, better social contact and higher levels of physical activity than patients in nursing homes.3

It’s not just the patients themselves who want to stay at home. Hospitals and health insurers are increasingly recommending home health over other care settings. The major reason is cost. In the US, home health is the most cost-effective setting for treatment, nearly three times less expensive than care in a skilled nursing facility.4 For this reason, home health has become a larger proportion of post-acute care patients discharged from hospitals over the last decade.

With an ageing population, the demand for home health is expected to grow significantly. Under this favourable backdrop, we recently initiated a position in LHC Group. LHC is a national provider of in-home healthcare services in the US. There are two critical metrics in the home care industry: quality and patient satisfaction. LHC demonstrates strong performance on both these metrics. More than half of its home health locations across the US were named among the nation’s best as part of an independent industry ranking, HomeCare Elite. According to the Centers for Medicare and Medicaid Services (CMS) Five-Star Quality Rating System, LHC achieved scores significantly above the industry average.5

Will policy changes catch up with technological changes?


We have previously discussed how a range of healthcare technologies have helped tackle the COVID-19 pandemic. In the early days of the pandemic, patients were anxious to let nurses into their homes for in-person visits. Hence, the use of telehealth and remote monitoring increased enormously during the past 18 months. A lot of these technologies were already available pre-COVID, but the pandemic has significantly accelerated their adoption. Nevertheless, insurance coverage remains the major hurdle for wider adoption. Based on our conversation with the management at LHC Group, new technologies are unlikely to be adopted widely unless they are covered by the CMS. For example, LHC provides a free personal emergency response device which can detect falls and automatically notifies LHC’s response team. It also provides vital monitoring systems to some high acute patients so that more hospital patients can get their care at home. Unfortunately, these services will remain at a small scale until reimbursement policies catch up with technological changes and support their wider adoption.

1 https://www.theguardian.com/society/2021/aug/12/record-number-of-nhs-england-patients-waiting-for-routine-hospital-treatment

2 https://www.ukhca.co.uk/mediastatement_information.aspx?releaseID=236253

3 https://bmcgeriatr.biomedcentral.com/articles/10.1186/s12877-016-0312-4

4 http://s2.q4cdn.com/960461372/files/doc_downloads/2021/01/AMED_JPM-Presentation-v.16.pdf

5 https://lhcgroup.com/newsroom/lhc-group-earns-top-marks-in-latest-cms-star-and-homecare-elite-performance-measures/

Important Notices:
Risks include: the price of shares (“Shares”) in FP WHEB Sustainability Fund, WHEB Sustainable Impact Fund or WHEB Environmental Impact Fund may increase or decrease and you may not get back the amount originally invested, for reasons including adverse market and foreign exchange rate movements. Past performance does not predict future returns. The Fund invests in equities and is exposed to price fluctuations in the equity markets, and focuses on investments in mid-sized companies in certain sectors so its performance may not correlate closely with the MSCI World Index (the benchmark). For full risks, please see fund prospectus on www.whebgroup.com

 

General: This information, its contents and any related communication (altogether, the “Information”) is issued by WHEB Asset Management LLP (“WHEB Asset Management”). It is intended for information purposes only and does not constitute or form part of any offer or invitation to buy or sell any security including any shares in the FP WHEB Sustainability Fund or WHEB Sustainable Impact Fund, including in the United States. It should not be relied upon to make an investment decision in relation to Shares in the FP WHEB Sustainability Fund or WHEB Sustainable Impact Fund or otherwise; any such investment decision should be made only on the basis of the Fund scheme documents and appropriate professional advice. This Information does not constitute advice of any kind, investment research or a research recommendation, is in summary form and is subject to change without notice. The performance shown does not take account of any commissions and costs charged when subscribing to and redeeming shares. WHEB Asset Management has exercised reasonable care in preparing this Information including using reliable sources, however, makes no representation or warranty relating to its accuracy, reliability or completeness or whether any future event may or may not occur. This Information is only made available to recipients who may lawfully receive it in accordance with applicable laws, regulations and rules and binding guidance of regulators. WHEB Asset Management LLP is registered in England and Wales with number OC 341489 and has its registered office at 7 Cavendish Square, London, W1G 0PE. WHEB Asset Management LLP is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 496413.

 

FP WHEB Sustainability Fund

FundRock Partners Limited (formerly Fund Partners Limited) is the Authorised Corporate Director of the Fund and is authorised and regulated by the Financial Conduct Authority with Firm Reference Number 469278 and has its registered office at 6th Floor Bastion House, 140 London Wall, London, EC2Y 5DN. The state of the origin of the Fund is England and Wales. The Representative in Switzerland is ACOLIN Fund Services AG, Leutschenbachstrasse 50, CH-8050 Zurich, whilst the Paying Agent is NPB Neue Privat Bank AG, Limmatquai 1/am Bellevue, P.O. Box, 8024 Zurich . The relevant documents such as the prospectus, the key investor information document (KIIDs), the Articles of Association as well as the annual and semi-annual reports may be obtained free of charge from the Representative in Switzerland.

 

WHEB Sustainable Impact Fund

The Manager of the Fund is FundRock Management Company S.A., authorised and regulated by the Luxembourg regulator to act as UCITS management company and has its registered office at 33, rue de Gasperich, L-5826 Hesperange, Grand-Duchy of Luxembourg. The Representative in Switzerland is ACOLIN Fund Services AG, Leutschenbachstrasse 50, CH-8050 Zurich, whilst the Paying Agent is NPB Neue Privat Bank AG, Limmatquai 1/am Bellevue, P.O. Box, 8024 Zurich. The relevant documents such as the prospectus, the key investor information document (KIIDs), the Articles of Association as well as the annual and semi-annual reports may be obtained free of charge from the representative in Switzerland. The state of the origin of the Fund is Ireland. The Fund is registered for distribution to professional investors in Austria, France, Germany, Italy, Luxembourg, Norway, Singapore, Sweden and the United Kingdom, and is registered for offering to retail investors in Switzerland, Denmark and the Netherlands. The Fund is also available for professional investors in Belgium and Hong Kong. It is not available to investors domiciled in the United States.

 

WHEB Environmental Impact Fund

The Manager of the Fund is FundRock Management Company S.A., authorised and regulated by the Luxembourg regulator to act as UCITS management company and has its registered office at 33, rue de Gasperich, L-5826 Hesperange, Grand-Duchy of Luxembourg. The Fund is registered for distribution to professional investors in the United Kingdom. It is not available to investors domiciled in the United States.

 

The MSCI information may only be used for your internal use, may not be reproduced or re-dissseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com).

Sign up to impact fund updates

Sign up below to receive email updates on our impact investment funds.
{{ errors[0] }}
{{ errors[0] }}
{{ errors[0] }}
{{ errors[0] }}
{{ errors[0] }}
{{ errors[0] }}
Authorised and regulated by the Financial Conduct Authority Copyright 2024© WHEB. All rights reserved Made by Thursday
How to invest