Skip to main content

Advanced Search

Advanced Search

Current Filters

Filter your query

Publication Types



Newsletter Article


Quality-Based Payment System Generates Home Care Savings, CMS Says

May 7, 2010 -- A small scale Medicare program testing a home care payment system based on measures of quality and efficiency generated savings in three out of four regions in the country, the Centers for Medicare and Medicaid Services announced this week.

Home health agencies subject to the payment system generated a total of $15 million in Medicare savings, the agency said in the May 6 news release. Officials determined whether or not savings occurred by comparing spending associated with home health agencies subject to the measures to that associated with a control group of agencies that were not rated on quality and efficiency.

A total of seven quality and efficiency measures were used in the study.

The savings were shared by 166 home health agencies that either rated in the top 20 percent of their state on the quality and efficiency measures or made significant improvements in quality of care. A total of 59 percent of agencies subject to the measures qualified for higher payments funded by the savings.

The results were from the first year of the program, which began in January 2008 and ended in December 2009. Medicare-certified home health agencies in seven states were invited to take part in the program, which was voluntary.

CMS will calculate savings and bonus payments for the second year of the demonstration, calendar year 2009, later this year.

Publication Details