Health Systems Reduced Home Care Services in 2026
Multiple U.S. health systems cut home health programs in 2026 as financial and regulatory pressures intensified.
Updated on Sept. 18, 2026 in Healthcare
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In 2026, various health systems across the United States closed, reduced, or suspended home-based care services while facing a 1.3% decrease in Medicare payments. These operational shifts included workforce reductions and the discontinuation of specific divisions at several major medical providers.
Why it matters
Health systems cited regulatory burdens, shifting operating environments, and the strategic need to allocate resources as primary drivers for the service cuts. This trend reflects a broader effort to manage financial sustainability amidst a $220 million aggregate decrease in federal Medicare home health payments.
CMS estimated a $220 million decrease in total Medicare payments to home health agencies in 2026, representing a 1.3% reduction. Simultaneously, individual providers implemented significant cuts, including 214 layoffs at Health First and a 144-position reduction at UVM Health.
The players
Centers for Medicare & Medicaid Services
This federal agency administers the Medicare program and sets payment policies that influence the financial viability of home health providers.
Health First
A health system based in Rockledge, Florida, that implemented workforce reductions and ended its hospital-at-home program.
University of Vermont Health
A regional health provider that initiated a net reduction of 144 positions in response to financial projections.
Stanford Health Care
An academic medical center based in Palo Alto that maintained an active transitional care model reaching 1,000 patient enrollments.
Cleveland Clinic
A prominent non-profit academic medical center that chose to expand its hospital-at-home service capacity during 2026.
The details
Health systems identified specific service lines for closure or reduction while maintaining other home-based care offerings, often implementing workforce cuts across administrative, management, and clinical departments. While some entities scaled back, others such as Cleveland Clinic and Baptist Health launched or expanded hospital-at-home programs to pivot their delivery models.
Timeline
January 2026: Saint Francis Health System launched a hospital-at-home program.
February 2026: Trinity Health suspended home health and outpatient hospice services.
March 2026: Cleveland Clinic expanded its hospital-at-home program.
May 2026: Stanford Health Care enrolled 1,000 patients in its transitional care model.
September 1, 2026: Altru Health System discontinued home health services.
Market Landscape
The recent closures follow a pattern set by the CMS Acute Hospital Care at Home waivers, which remain in effect through 2030. While some systems consolidate services to cut costs, others are doubling down on home-based models to compete for patient volume against larger hospital networks.
Patients may experience changes in local service availability or reduced access to home health and hospice care as systems consolidate. Households should verify if their local providers still offer home-based programs or if referrals to alternative care facilities are necessary.
The takeaway
Health systems are increasingly prioritizing resource allocation by choosing between traditional home health and more modern hospital-at-home models. Patients and their families should proactively confirm the continuity of home-based care options with their primary health providers.
Further reading
Learn more about the evolving Healthcare landscape for major hospital systems.
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