Medicare Home Health Cuts Could Have Ripple Effect on Hospice, Palliative Care

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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