Implications for Home Health and Hospice Care under the New Prospective Payment System

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Abstract
The purpose of this article is to discuss the impact of new federal regulations on home health care. Because the primary changes focus on payment method, aspects of the effect of the prospective payment system (PPS) on home health care patients and providers are explored. The historical background and contemporary rationale for reform are offered, and the issues of quality and ethics are addressed. The article concludes with thoughts on the importance of maintaining the integrity of Medicare/Medicaid programs and a challenge to the idea that a dichotomy exists between cost containment and high quality in health care. With full cooperation and commitment by all involved parties, a balance can be struck in which higher-quality care is provided in a cost-effective manner.

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