Margin pressures from the proposed cuts to Medicare home health rates could impact palliative care and hospice.
The U.S. Centers for Medicare & Medicaid Services (CMS) in June released its proposed home health reimbursement rule for 2023, which included a 4.2% reduction in aggregate payments totaling an estimated $810 million.
The agency cited budget neutrality requirements to explain the cuts, as well as adjustments related to the Patient-Driven Groupings Model (PDGM), a new payment system introduced in 2020. Many home health providers have decried the proposal, with some calling it a “declaration of war” that threatens their sustainability.
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