Half of the participating regions failed to generate program savings. All the hard work participating agencies put into the pay for performance demonstration project isn't necessarily netting them any financial benefit. The Centers for Medicare & Medicaid Services has calculated the Medicare program savings for the second year of the home health agency pay for performance demonstration project, and only two of the four demo regions saw savings, according to the National Association for Home Care & Hospice. That means agencies from the two regions whose intervention group did not save Medicare money overall will not receive bonuses. In 2009, the South and West regions achieved $14.95 million in savings, NAHC reports. The Northeast and Midwest regions did not see savings. For the demo, CMS calculated savings by comparing total Medicare spending for the intervention group's patients versus a control group. In comparison: In the first year of the demo in 2008, three of the four regions saw $15.4 million in savings and shared in the bonuses (see Eli's HCW, Vol. XIX, No. 16, p. 124). Only the Midwest region, comprised of Illinois agencies, did not generate savings under the program. Of the 270 agencies in the savings-generating regions, 123 will receive incentive payments based on their performance. CMS awards both topperformer and top-improver bonuses. In year one of the demo, 166 agencies shared in the bonus payments, NAHC notes in its member newsletter. CMS and contractor officials did not respond to inquiries for this story.