CMS says that the Home Health Value-Based Purchasing Model resulted in savings of more than $600 million between 2016 and 2019. Industry observers expect a nationwide expansion in the 2022 Home Health Prospective Payment System proposed rule this summer.
The savings were driven by reduced spending on inpatient hospitalization and skilled nursing facility servcies, according to CMS. There was an increase noted in emergency department visits and overnight stays for observation.
The model adjusts home health claim payments based on outcomes for agencies in nine states: Arizona, Florida, Iowa, Maryland, Massachusetts, Nebraska, North Carolina, Tennessee and Washington.
For CY2020 payment adjustments, based on 2018 performance data, CMS noted agencies saw a maximum increase in payment of 6% and a maximum decrease in payment of 5.61%. Half of all agencies saw their payments adjusted between a reduction of 1.2% and an increase of 1.06%.
See more on the HHVBP results: