New Study Shows Service Makes Up Bulk of Home Oxygen Costs

Washington

A new study commissioned by the American Association for Homecare shows that services account for the lion’s share of costs in providing home oxygen — 72 percent — while equipment represents only 28 percent.

Conducted by independent research firm Morrison Informatics, Mechanicsburg, Pa., the new study indicates that services including delivery, patient assessment and education, routine safety inspections, maintenance, ongoing support including refills, emergency services and related expenses such as regulatory compliance contribute to the majority of the costs in providing home oxygen therapy.

More than 40 congressional staffers attended a June 27 briefing on the study, led by Rep. Tom Price, R-Ga.

Morrison based its research on a survey of 74 home oxygen providers that collectively serve more than 600,000 beneficiaries, more than half of the Medicare population receiving oxygen at home. According to the study, the average cost per patient, per month, for home oxygen therapy is $201.20, with $55.81 of that total for equipment and $145.39 for services.

“The study shows that, contrary to some perceptions, home oxygen therapy involves much more than a piece of equipment,” said Tom Ryan, AAHomecare chairman and CEO of Homecare Concepts, Farmingdale, N.Y.