In May 2007, CMS issued its proposed overhaul of the home health PPS system, fueled in part by MedPac’s claims that industry gross margins exceeded on average 16% and also by the need to refine the system to more accurately match payment with service.
Almost every aspect of the PPS system has been refined, including new therapy thresholds, almost twice as many HHRGs, changes in the OASIS forms, case mix and outcomes, and a severity-adjusted nonroutine medical supply add-on.
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Radical Changes Ahead for Homecare