Home Health Payments Much Lower Than Expected Under New Model

Medicare reimbursement cuts meant to keep home health payments levels during the transition to a patient-based payment system have actually resulted in significant revenue decreases for the providers, according to an analysis of 2020 Medicare claims.

The analysis prepared by Dobson | DaVanzo & Associates, LLC for Partnership for Quality Home Healthcare found that total aggregate payments to home health providers were about 22 percent lower than projected over the first four months of the Patient-Driven Groupings Model, a new Medicare reimbursement system that pays home health providers based on patient characteristics rather than volume of services rendered.

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