Home healthcare spending down almost a quarter under PDGM

Under the Patient-Driven Grouping Model, spending on home healthcare services is down — way down. In fact, according to an analysis from health economics and policy consulting firm Dobson DaVanzo and Associates, spending on home healthcare is down 21.6% from the initial projections.

DDA largely attributes this to incorrect assumptions made by the Centers for Medicare and Medicaid Services when it comes to provider behavior under PDGM as compared to the old Prospective Payment System, which ended a two-decade run on January 1.

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