tci Medicare Compliance & Reimbursement - 2006 Issue 9

HHAs: Home Health PPS Reins In Medicare Spending--To A Potential Fault

Financial incentives could lead providers to compromise quality of care.Steady hospital readmission rates and emergency department visits indicate that the home health prospective payment system has had no significant effects on the quality of care for Medicare beneficiaries. But that's not a good enough reason to step back on quality-of-care monitoring for home health agencies, says the HHS Office of Inspector General.The home health PPS went into effect in 2000 to stave off rising Medicare home health care spending. Under the former cost-based payment system, financial incentives allowed HHAs to increase their Medicare revenue by providing excessive...

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