tci Medicare Compliance & Reimbursement - 2016 Issue 14

Home Health Prospective Payment System: Truncated Reimbursement in 2017 Spells Woes for HHAs

Patients might suffer equally. Rebasing, reshuffled case mix, and reduced home health utilization are all adding up to a shrinking potential market for home health agencies (HHAs). And beneficiaries are likely to be hit by the inability of HHAs to attract the best potential caregivers. In its proposed rule for the 2017 home health prospective payment system update, the Centers for Medicare & Medicaid Services (CMS) announces its plan to trim HHAs’ Medicare payment rates by 1 percent, slicing $180 million from 2017 payments. Breakdown: “The proposed decrease reflects the effects of the 2.3 percent home health...

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