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HOME HEALTH: Reasons why 2014 will be a tough year

Home health agencies will be faced with what could be the toughest year since the interim payment system (IPS) was in effect in 1997 to 2000–during which period over 3,000 agencies left the field.  Reimbursement is being affected now by a 2 percent sequestration cut coupled with an additional 1.5 percent Medicare payment cut.  The 2014 national standardized home health episode payment rate will be $2,860.20 in 2014, down from $2,963.65 in 2013.  This newsletter issue includes an analysis of the impact of the 2014 reimbursement policies on different types of home health agencies.  Hardest hit will be freestanding proprietary agencies (-1.7 percent), then freestanding government-owned agencies (-1.6 percent).

Source: Proposed 2014 PPS rule, 2% sequestration cut: a double whammy for the industry; and, Proposed 2014 PPS rule’s impact on home health agencies.  Home Health Line;38(26):1, 6-7, and insert, July 8, 2013.  Click here for publisher’s website: http://homehealthline.decisionhealth.com/Articles/Detail.aspx?id=516143  Posted by AHA Resource Center (312) 422-2050, rc@aha.org

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