Effects of Medicare Payment Reform: Evidence from the Home Health Interim and Prospective Payment Systems
AbstractMedicare continues to implement payment reforms that shift reimbursement from fee-for-service towards episode-based payment, affecting average and marginal reimbursement. We contrast the effects of two reforms for home health agencies. The Home Health Interim Payment System in 1997 lowered both types of reimbursement; our conceptual model predicts a decline in the likelihood of use and costs, both of which we find. The Home Health Prospective Payment System in 2000 raised average but lowered marginal reimbursement with theoretically ambiguous effects; we find a modest increase in use and costs. We find little substantive effect of either policy on readmissions or mortality.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17870.
Date of creation: Feb 2012
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- Huckfeldt, Peter J. & Sood, Neeraj & Escarce, Jose J. & Grabowski, David C. & Newhouse, Joseph P., 2012. "Effects of Medicare Payment Reform: Evidence from the Home Health Interim and Prospective Payment Systems," Working Paper Series rwp12-007, Harvard University, John F. Kennedy School of Government.
- H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
- I1 - Health, Education, and Welfare - - Health
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