Home Health Value-Based Purchasing Model Lowered Medicare Spending

 The Home Health Value-Based Purchasing (HHVBP) Model reduced Medicare spending by $1.38 billion and improved care quality during its first six years, according to a report from CMS. The model aimed to improve the quality of home healthcare services for Medicare beneficiaries by providing financial incentives to home health agencies for quality improvements. The model was associated with slight declines in three patient experience measures that rate professionalism, communication, and discussion of care by agencies. But the model improved home health patients’ mobility, self-care, and other aspects of functional status, the report noted. There was some growth in disparities among beneficiaries with Medicaid under the model. Racial and ethnic minority beneficiaries were more likely to live in areas with lower-quality home health agencies, with variation observed among individual counties and across subpopulations.

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According to a report from CMS, the Home Health Value-Based Purchasing (HHVBP) Model successfully reduced Medicare spending by $1.38 billion and improved care quality during its initial six-year period. The model aimed to enhance home healthcare services for Medicare beneficiaries by offering financial incentives for quality improvements. While there were slight declines in patient experience measures, the model showed significant improvements in the functional status of home health patients, particularly in mobility and self-care. However, disparities among Medicaid beneficiaries were observed, with racial and ethnic minority groups more likely to have access to lower-quality agencies. These findings highlight the cost reduction and care quality benefits of the HHVBP Model while emphasizing the need to address disparities among specific beneficiary groups.


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