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Key takeaways
- State the service, units, dates and provider covered by the authorization.
- Keep approved, scheduled, completed, billed and paid activity separate.
- Unused hours are a diligence question rather than guaranteed acquisition upside.
Why it matters in a home care sale
An approval can show how much service a program permits, but it does not show how much work took place. A buyer needs to follow the hours from approval to scheduling, service, billing and payment. Each stage answers a different question about the business.
Read the approved service, dates, provider and limits. Some records use units rather than hours. Check the unit definition before converting it. Explain any overlap between an original approval and a later change so the same work is not counted twice.
What the program record can establish
VA's overview ties its homemaker and home health aide benefit to assessed needs, eligibility and availability. It is not a commitment to buy a fixed amount from a particular agency. Review the actual provider and approval documents for the case at hand. (Source: VA)
Do not carry unused hours into a later month without checking the terms. An unused balance may expire or need a new review. The payer or program should confirm what applies; a spreadsheet cannot grant permission to deliver more care.
An illustrative path from approval to payment
Suppose a fictional record for one closed period shows 100 approved hours, 90 scheduled hours and 85 delivered hours. All delivered hours came from that schedule, with no other changes. There are 10 unscheduled hours and 5 scheduled but undelivered hours. The total 15 approved hours not delivered are not earned revenue. First find out why they were not delivered. Then review which of the completed hours meet the billing conditions and what cash was collected.
Medicaid EVV applies to specified in-home services and verifies information about covered visits. It does not turn an unused approval into a completed visit. (Sources: Medicaid.gov, Social Security Act section 1903(l))
What the buyer should investigate next
Ask whether gaps reflect staff shortages, client choice, service interruptions or approval dates. A forecast that assumes all unused hours will be delivered needs support for both demand and staffing. Keep that forecast separate from work already completed.
The payer-mix guide links service hours to earnings and cash. The EVV guide explains visit evidence. Neither the approved balance nor a verified visit alone proves the buyer's right to participate in the program after closing.
The EVV definition provides a short record comparison for the next stage. It helps distinguish evidence of a recorded visit from the authorization being reviewed here.
Frequently asked questions
Are authorized hours a guarantee of payment?
No. The actual terms, service delivery, documentation, provider participation, billing requirements and other conditions still matter. Review the applicable program and the later collection evidence.
Can unused hours be carried into another period?
Do not assume so. Read the authorization's dates, unit limits and program rules. An unused balance on a report does not independently establish permission to deliver it later.
Do authorized hours automatically transfer to a buyer?
No universal rule is appropriate. Confirm the provider, program and transaction requirements with the relevant payer or agency. A seller's authorization record does not itself establish the buyer's participation.
Are authorized hours the same as EVV records?
No. Authorization concerns permitted activity; EVV verifies specified information about covered visits. A verified visit must still be considered alongside authorization, documentation, billing and payment conditions.
Sources
Sources are dated to distinguish current guidance from earlier publications. They support the identified facts; the transaction questions and examples are educational analysis.
- Medicaid.gov: Electronic Visit Verification (2026). Retrieved September 5, 2026.
- Social Security Act section 1903(l): electronic visit verification (2026). Retrieved September 5, 2026.
- VA: Homemaker and Home Health Aide Care (2026). Retrieved September 5, 2026.