Home Health & Hospice Week

Reimbursement:

Follow These 4 Tips To Counter Future PDGM Rate Cuts

How clean is your data?

What can home health agencies do with the threat of massive cuts due to the Patient-Driven Groupings Model ever present on the horizon? Here are some ideas from the experts:

1. Step up advocacy efforts. “The industry needs to be taking action now to cut [the Centers for Medicare & Medicaid Services] off at the pass,” advises attorney Robert Markette Jr. with Hall Render in Indianapolis. “It may take legislation to avoid CMS implementing a one-time cut in 2026 to make up for all of the partial adjustments they have not implemented. It would be nice if we could get Congress to step in to prevent that,” Markette says.

“We don’t need to let up now,” exhorts Angela Huff with FORVIS in Springfield, Mo. “The value of home care has been demonstrated and is the way of the future; however, continued advocacy will be needed as we move forward with rising costs, [Value-Based Purchasing] implications and shifts in the space,” Huff emphasizes.

2. Trim the fat — again. For most HHAs, “the financial reality is the increase in the rate doesn’t keep pace with its projected/actual increased costs,” observes reimbursement expert M. Aaron Little, also with FORVIS. “Therefore, agencies must continue to evaluate operations to identify opportunities for improved cost management,” Little recommends.

3. Focus on Value-Based Purchasing. Your VBP performance next year can bump up your pay rate by as much as 5 percent, Little points out. In light of that potential, “agencies should continue to closely manage VBP performance,” he recommends.

“Agencies need to stay focused on the current VBP requirements for 2024 and also start planning for the changes that well take effect Jan.1, 2025,” Huff specifies. In the 2024 final rule, CMS changes the model baseline year to 2023 and swaps out quality measures in the final rule (see HHHW by AAPC, Vol. XXXII, No. 39-40 for VBP details).

4. Knuckle down to produce complete and accurate data. “Revenue follows the accuracy. Outcomes follow the accuracy,” Home Care Answers stresses.

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