Hospice Association of America

Hospice Fact Sheet

What is Hospice?

Hospice care involves a core interdisciplinary team of professionals and volunteers who provide medical, psychological, and spiritual support to the terminally ill, as well as support for the patient's family. The care is primarily based in the home, enabling families to remain together in peace, comfort, and dignity.

What Are the Advantages of Hospice Care?

When Was the First Hospice Established?

While the hospice concept dates back to ancient times, the American hospice movement did not begin until the 1960s. The first hospice in this country, The Connecticut Hospice, Inc., began providing in-home services in March 1974. The National Cancer Institute funded it for its first three years.

How Many Hospices Exist Today?

Medicare hospice participation has grown at a dramatic rate, largely as a result of a 1989 Congressional mandate (PL 101-239, §6005) to increase reimbursement rates by 20%. The number of hospices participating in Medicare increased from 31 in 1984 to 3,257 in 2007. This number consists of 627 home health agency-based hospices, 562 hospital-based hospices, 18 skilled nursing facility-based hospices, and 2,050 freestanding hospices.

What Is the Future of Hospice Care?

The need for hospice services will continue to rise due to the growing aging population and the rising health care costs. More importantly, medical professionals, as well as the general public are choosing hospice over other forms of health care delivery because of its holistic, patient-family, in-home centered philosophy.

Who Pays for Hospice Care?

Hospice services are covered under Medicare, and currently 48 states offer hospice care as an option under their Medicaid programs. In addition, hospice care is a covered benefit under most private insurance plans, HMOs, and other managed care organizations. Military personnel and their dependents are covered for hospice under CHAMPUS. Hospices continue to rely heavily on grants and community support to fund un-reimbursed care and hospice services for patients with little or no insurance.