Agencies at risk: increased liability under PPS

With the long anticipated shift from cost reimbursement to a prospective payment system (PPS) for Medicare home health services, the home care industry can look forward to improved opportunities for service flexibility, the end to retroactive cost disallowances, and opportunities for financial rewards through efficiencies in operation. However, bringing home care into a more modern world of reimbursement also means that new forms of risk emerge, creating the potential for a liability that must be recognized and properly managed.