Thursday, November 10, 2016

Dramatic Change in Outlier Calculations - 11/10/2016

CMS is completely changing the methodology it outlier payment policy.  It is changing from a cost per visit approach to a cost per unit approach.  This means that visits with more minutes will count more toward outliers than visits with less time per visit.  The unintended (or intended) consequence of this approach is to dramatically decrease the outlier payments of daily visit diabetic and BID diabetic patients who cannot self-inject insulin.  CMS has tried for many years to reduce the cost of these patients. 

We performed a simple analysis of the impact on outlier payments for these patients and found payments for daily diabetic patients decreased by 40% and the BID diabetic patient’s payments decreased by 57%.  These are dramatic cuts for these patients and will force the home health agencies that are already losing money on these patients to lose even more.

We intend on providing more information on this at our upcoming conference in January in Las Vegas.



To view the rule please go to:

https://www.gpo.gov/fdsys/pkg/FR-2016-11-03/pdf/2016-26290.pdf

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