Home Health & Hospice Week

Industry Note:

HHVBP Saves Medicare Money

But it also increases ER use.

If you are wondering whether Medicare will take Home Health Value-Based Purchasing nationwide, a new report may give you a hint.

Recap: Nine states began participating in the HHVBP Model starting in January 2016. Home health agencies in HHVBP states receive performance scores for individual quality measures that are combined into a Total Performance Score (TPS) to determine their payment adjustment relative to other agencies within their state. Adjustments started out at +/-3 percent in 2018 (based on 2016 scores), and will climb to +/-8 percent by 2022.

For the first two years of the program, 2016 and 2017, Medicare spending decreased in HHVBP states by 0.9 percent or $114 million during home care episodes and 30 days after, says a new report evaluating the second year of the program. There was an even bigger reduction of 3.9 percent for unplanned hospitalizations during that time frame.

However: There weren’t declines in all types of care for home health patients, and there were even increases in emergency department use for them, the report notes.

Watch for: HHVBP’s impact may really kick in for the 2018 program year, since that’s when HHAs began receiving payment adjustments based on their scores.

A link to the report is at https://innovation.cms.gov/initiatives/home-health-value-based-purchasing-model.

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