Telehealth in Home Health: Why Some Agencies Are Dropping It — And How AI Can Save It

Telehealth in Home Health Is Disappearing — But Should It Be? What once seemed like the future of senior care is now being abandoned. Nearly 1 in 5 home health agencies adopting telehealth during the pandemic have pulled the plug. Here's why — and what that means for the future of virtual care.

A recent study in Health Services Research found that:

• 19% of HHAs that had telehealth have now stopped using it.
• Most of these agencies started telehealth after 2020.
• The biggest reasons for dropping it were:

Some home health leaders even said flat-out:

The bottom line: Over half of agencies still use telehealth, but many say they’ll stop unless Medicare starts reimbursing it.

Why This Is a Missed Opportunity

Researchers warn that if CMS doesn’t start reimbursing telehealth, more agencies may abandon it, even though:

• Telehealth can be cost-effective
• It may improve patient outcomes.
• And reduce hospital visits and caregiver strain.

The authors are calling for:

• Better studies to prove telehealth’s value
• CMS incentives to support virtual care
• Smarter technology adoption to help patients and caregivers use it with ease

How Artificial Intelligence Can Help Keep Telehealth Alive in Home Health

As home health agencies face declining telehealth adoption due to patient reluctance, lack of reimbursement, and operational challenges, AI and automation present a path forward. These technologies can fill the gaps that manual systems struggle with — enhancing patient engagement, simplifying caregiver workflows, and ensuring telehealth becomes viable and sustainable. Here's how:

1. Patient Readiness Screening with AI

Not every patient is a good fit for telehealth, especially in home health, where elderly individuals may struggle with technology. AI can solve this problem by assessing each patient’s suitability based on age, cognitive ability, physical limitations, tech comfort, and device accessibility. 

By analyzing EHR data, past care interactions, and even social determinants of health, AI tools can categorize patients into “telehealth ready,” “needs support,” or “not recommended” segments. This helps agencies avoid blanket telehealth rollouts and instead deploy virtual care where it’s most effective, boosting adoption and outcomes.

2. Virtual Onboarding & AI Agents

Getting started is one of the most significant barriers to telehealth for older adults. Automation can assist patients and their family members by guiding them through telehealth setup using user-friendly tools like voice-guided instructions, step-by-step visual prompts, and 24/7 virtual assistants. 

These AI agents an help with everything from downloading apps to adjusting camera angles or microphone settings. This reduces the burden on agency staff who’d otherwise spend hours providing tech support and empowers patients to feel more confident and self-sufficient with virtual care.

3. Automated Scheduling and Reminders

Telehealth success depends heavily on patient participation. Missed appointments, forgotten check-ins, or last-minute tech issues can lead to poor outcomes and wasted resources.

AI can help by automatically sending patients personalized reminders for upcoming virtual visits, medication adherence checks, and even simple device readiness prompts, like testing audio and video connections before a session. These proactive nudges reduce no-show rates and ensure virtual care sessions begin promptly without unnecessary interruptions.

4. Care Personalization with AI Insights

One major criticism of telehealth is that it can feel impersonal. AI tackles this by analyzing patient data, such as clinical history, lifestyle habits, and preferences, to generate highly tailored care plans. For instance, AI might recognize that a patient prefers shorter afternoon check-ins, or that specific reminders are more effective when sent via text rather than email. By incorporating this level of nuance, AI helps ensure that virtual care doesn’t feel “one size fits all” but instead mirrors the warmth and attention of in-person visits.

5. Credentialing and Compliance Automation

With telehealth services expanding, ensuring that only authorized, credentialed clinicians deliver virtual care becomes necessary for compliance. AI and automation tools can help create automated credential management. 

With automation, agencies can track caregiver licenses, telehealth certifications, and HIPAA training statuses, flagging gaps or expiring documents in real time. These systems can also automate audit trails, ensuring every virtual interaction is logged and stored securely. This reduces compliance risk and saves staff countless hours chasing paperwork and updating spreadsheets.

Industry News & Updates

1. We Can’t Sustain the Losses’: Nonprofit Home Health Providers Strategize To Survive Rise Of Medicare Advantage

As Medicare Advantage (MA) continues to grow at a record pace, now covering the majority of Medicare beneficiaries, nonprofit home health care providers are feeling more financial strain than ever. While this shift is reshaping the health care landscape, it’s coming at a steep cost for many community-based, nonprofit organizations. Curious about how these providers are adapting in the face of mounting pressure? Read our latest blog to dive deeper into the issue and explore what’s at stake.

2. Changing The Narrative’: What It Takes To Build Sustainable Margins In Today’s Home-Based Care Market

Struggling to maintain healthy margins in today’s challenging reimbursement environment? Home-based care providers face growing financial pressures, especially rising labor costs. But some strategies can help. From accurate cost reporting to strengthening payer relationships and boosting operational efficiency, industry leaders share what’s working. Read our latest blog to discover home-based care providers' key strategies to overcome today’s most significant financial challenges.

3. Proposed Payment System Rules – What to Know for 2025

Join us for a quick overview of the CMS proposed rules released in April and what they could mean for your organization in 2025. Our expert panel will cover key updates across hospice, inpatient, long-term care, psychiatric, and skilled nursing facilities—plus insights on reimbursement, operations, and compliance. Reserve your spot today and get prepared for what’s ahead!

Hear from Luminaries on AI & Automation in Home & Post-Acute Care

In this episode of the Home Healthcare Luminaries, Peter Ross, CEO of Senior Helpers, discusses how technology is helping seniors age well at home. He shares how tools like the LIFE Profile enable personalized care plans, reducing hospital readmission rates from nearly 20% to under 3%. Senior Helpers is bridging critical care gaps for underserved seniors by investing in caregiver training and leveraging remote monitoring. Peter also emphasizes how AI and automation are shaping the future of senior care and why staying current with tech is vital for home care agencies.

About AutomationEdge

AutomationEdge CareFlo is an AI agent for home and post-acute care. Our AI agents use AI, RPA, NLP, and IDP tools for end-to-end automation. Speed up the intake to revenue cycle management to improve the experiences of clients, clinicians, caregivers, and staff. AutomationEdge is a trusted choice for industry leaders like Elara Caring, Devoted Guardian, Home Assist, Bridhe Home Health, and the University of Maryland Medical System (UMMS). Our innovations boost efficiency by 90%, cut costs by 50%, and simplify care.

What’s Next?

That’s a wrap on this edition of the AutomationEdge Newsletter: Frontline Insights for Home & Post-Acute Care — but we’re just starting. While technology will never replace the heart of care, it can amplify your impact.

In our next issue, we’ll take you further into the rapidly evolving world of home health, home care, post-acute, and hospice. Expect bold ideas, practical strategies, and real-life stories from those leading the charge. Until then, stay curious, stay compassionate, and stay tuned.  The next wave of innovation is coming, and we can’t wait to explore it with you.