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Home care industry is disappointed with new IPS cost limits

August 16, 1999

Home care industry is disappointed with new IPS cost limits

Home health representatives continued to express disappointment last week in the interim payment system cost limits for FY00 published in the Federal Register Aug. 5. The schedules of limitations, which are effective for cost reporting periods beginning on or after Oct. 1, 1999, or until a home health prospective payment system is implemented, increased per-beneficiary limits by a modest 1.7% (see table below). The notice also includes a modest 13-cent increase in per-visit costs to offset costs associated with OASIS. "We are not happy with them in general, and the little pittance they throw at us for OASIS is nothing," said Scott Lara with the Home Care Association of America.


The IPS HHA Limits Effective Oct. 1, 1999:
Number of Agencies % of agencies exceeding visit limits % of costs exceeding visit limits % of agencies exceeding beneficiary limits % of costs exceeding beneficiary limits
ALL AGENCIES 7161 14.9 1.3 78.6 12.1
FREESTANDING 4703 6.8 0.3 86.0 14.1
HOSPITAL-BASED 2458 30.4 2.8 54.3 9.1
OLD AGENCIES 4467 17.2 1.6 78.2 10.3
FREESTANDING 2467 7.9 0.4 87.6 11.5
HOSPITAL-BASED 2000 28.8 2.7 66.7 9.1
NEW AGENCIES 2693 10.9 0.7 79.2 17.2
FREESTANDING 2235 5.5 0.3 34.3 18.4
HOSPITAL-BASED 458 37.2 4.1 54.3 9.4
ALL URBAN 4612 15.2 1.5 79.1 12.0
FREESTANDING 3397 7.1 0.4 35.7 14.0
HOSPITAL BASED 1215 38.0 3.0 60.4 9.1
OLD AGENCIES 2574 16.0 1.7 82.0 10.2
FREESTANDING 1611 8.9 0.5 88.3 11.4
HOSPITAL-BASED 963 37.6 2.9 62.4 9.1
NEW AGENCIES 2038 12.2 0.9 74.8 16.9
FREESTANDING 1786 5.5 3 8 3.4 18.0
HOSPITAL-BASED 252 39.3 4.0 52.9 8.8
ALL RURAL 2549 14.2 0.8 77.7 12.4
FREESTANDING 1306 5.9 0.1 86.7 14.3
HOSPITAL-BASED 1243 23.0 2.1 68.2 9.3
OLD AGENCIES 1894 10.1 1.0 80.2 10.5
FREESTANDING 857 6.0 0.1 86.1 11.6
HOSPITAL-BASED 1037 20.6 2.1 70.6 9.1
NEW AGENCIES 655 10.9 0.2 80.4 18.9
FREESTANDING 449 5.7 0.0 88.0 20.3
HOSPITAL-BASED 206 34.7 1.4 55.9 11.6
BY REGION
OLD AGENCIES 4467 17.2 1.6 78.2 10.3
MIDWEST 1298 16.9 2.6 78.6 6.8
NORTHEAST 649 7.4 0.3 89.2 1
SOUTH 1857 17.0 1.2 80.1 12.0
WEST 662 28.4 4.1 61.4 8.4
NEW AGENCIES 2693 10.9 0.7 79.2 17.2
MIDWEST 607 15.2 1.0 73.1 10.9
NORTHEAST 247 19.6 2.4 60.2 9.9
SOUTH 1316 7.2 0.4 83.5 21.4
WEST 524 11.3 0.3 84.4 16.2