woman in hospice bed

The number of hospice patients grew 6.8% to 1.72 million eligible Medicare beneficiaries in 2020, the first year of the COVID-19 pandemic. That is the largest year-over-year increase, according to a new report from the National Hospice and Palliative Care Organization. 

The NHPCO Facts and Figures report found that 0.9% of hospice patients had a principal diagnosis of COVID-19, however, the virus may have contributed to the deaths of other beneficiaries who were admitted to hospice with other principal diagnoses. 

While the number of patients grew in 2020, there was actually a decrease in the percentage of eligible patients served. A  larger number of Americans died in 2020 than 2019 due to the COVID-19 pandemic, however only 47.8% of those who died were receiving hospice care. That was the lowest percentage since 2013 at 47.3%.

The report also highlighted continued racial disparities in hospice care. In 2020, white Medicare beneficiaries continued to comprise the largest percentage of Americans enrolled in hospice. That finding buttressed a study NHPCO released last week that found Blacks and Hispanics are less aware of the benefit than their white counterparts. 

There has also been a shift in the primary diagnosis attributed to hospice patients over the past two decades. In recent years Alzheimer’s disease, other forms of dementia and Parkinson’s disease have accounted for the largest grouping of patient diagnoses compared to cancer in 2002. 

NHPCO COO and interim CEO Ben Marcantonio said some providers use the annual report to “benchmark their own programs” in preparation for the coming year. 2022  has been a year of ongoing challenges for the hospice industry as the COVID-19 pandemic continued. 

Labor costs have been one of the biggest obstacles. Hospice aides and certified nursing assistants netted 9% hourly wage hikes in 2021 — more than double the increase they received in 2020, according to the most recent Hospice Salary and Benefits Report.

Many hospice providers have also seen a decline in daily census over the past several quarters. Idaho-based Pennant Group reported a 7.8% census decrease in the third quarter of this year. However, company executives  told investors last month at a banking conference the sector is poised for improvement in both labor costs and daily census in 2023.