Impact of the Medicare Home Health Prospective Payment System on Beneficiaries and Program Costs

What are the effects of Medicare’s home health prospective payment system (PPS) on access to and quality of care? The researchers examined how the new payment system affects home health agency practices (e.g. services provided per episode of care), Medicare expenditures per episode of care, outcomes of beneficiaries receiving home health services, and outcomes of post-acute care overall. The objective of the study was to provide policymakers with information about how third-party payment incentives affect care delivery and patient outcomes.