Home Health Proposed Rule updates Home Health Value-Based Purchasing (HHVBP)

By Chris Attaya
July 18, 2016 Home Health

CMS issued the Proposed CY 2017 Home Health PPS Rule in the Federal Register on July 5th. We have been waiting for over eight months to see how four of the 21 HHVBP measures were going to be implemented and we finally have our answer. They’re not. Since November, agencies have been inquiring how these measures listed below would be calculated since there were no definitions shared in the CY 2016 Home Health Final Rule.

  • (1) Care Management: Types and Sources of Assistance;
  • (2) Prior Functioning ADL/IADL;
  • (3) Influenza Vaccine Data Collection Period; and
  • (4) Reason Pneumococcal Vaccine Not Received

NAHC and VNAA had met with CMMI back in March regarding these 4 measures and were told to wait for the next rule making. And we now know; they will not be used as one of the measures to calculate the Total Performance Score (TPS) for VBP.

We have been waiting for over eight months to see how four of the 21 HHVBP measures were going to be implemented and we finally have our answer. They’re not."

Another notable VBP proposed change addressed the small and large volume cohort definitions. First, CMS changed the minimum requirement to eight HHAs in a size cohort. This will limit the number of states with small cohorts to four (Florida, Oklahoma, Iowa and Arizona). Secondly, size will not be used to calculate the base year Achievement Threshold and Benchmarks in each state. CMS noted the larger variances when calculating Thresholds and Benchmarks among small volume cohorts. Cohorts will be used only for purposes of calculating the linear exchange function (LEF) to translate a competing HHA's TPS into a value-based payment adjustment.

The Proposed Rule also changed some of the time frames for submitting New Measure data to 15 days (up from 7 calendar days) after each reporting period. At the same time they decreased the recalculation time frame request period for the Interim Performance Reports and the Annual TPS and Payment Reports from 30 days down to 15.

So how are agencies performing in the first 6 months of this first VBP performance year? For this review, we looked at three OASIS outcome measures from the SHP national database. We compared the agency median scores for the 6 month period January – June 2016 to the previous six months.

  State Q3/4 2014 Q1/2 2015 Q3/4 2015 Q1/2 2016 Chg. Q3/4 2014 to Q1/2 2015 Chg. Q3/4 2015 to Q1/2 2016
Improvement in Ambulation AZ 63.5% 63.5% 64.5% 66.0% 0.0% 1.5%
FL 66.0% 68.6% 70.1% 72.0% 2.6% 1.9%
IA 65.7% 67.4% 69.1% 70.4% 1.7% 1.3%
MA 65.8% 67.9% 68.2% 68.4% 2.1% 0.2%
MD 65.0% 66.7% 69.5% 72.3% 1.7% 2.8%
NC 62.6% 64.3% 67.4% 69.3% 1.7% 1.9%
NE 61.5% 63.9% 66.1% 69.1% 2.5% 3.0%
TN 65.1% 67.4% 69.4% 73.2% 2.3% 3.8%
WA 57.7% 59.4% 63.8% 64.8% 1.7% 1.1%
Improvement in Bathing AZ 73.1% 72.3% 73.1% 75.6% -0.8% 2.6%
FL 74.7% 75.4% 77.2% 79.4% 0.6% 2.2%
IA 73.3% 72.1% 72.8% 76.8% -1.2% 4.0%
MA 67.0% 69.6% 69.8% 74.0% 2.6% 4.2%
MD 70.0% 71.4% 74.1% 78.4% 1.5% 4.3%
NC 63.4% 66.1% 69.1% 72.8% 2.7% 3.6%
NE 70.3% 70.1% 74.5% 78.3% -0.3% 3.8%
TN 70.9% 72.3% 76.7% 79.5% 1.4% 2.8%
WA 64.9% 66.7% 69.5% 72.4% 1.8% 2.8%
Improvement in Bed Transferring AZ 60.1% 60.3% 62.9% 65.1% 0.2% 2.3%
FL 61.7% 64.0% 65.2% 67.3% 2.2% 2.1%
IA 63.3% 63.3% 64.7% 68.6% 0.1% 3.9%
MA 59.3% 62.6% 65.2% 66.6% 3.2% 1.4%
MD 61.2% 63.6% 65.1% 68.1% 2.4% 2.9%
NC 58.8% 60.3% 63.0% 66.4% 1.5% 3.3%
NE 65.0% 65.7% 67.0% 70.6% 0.6% 3.5%
TN 60.1% 61.3% 64.7% 68.3% 1.3% 3.5%
WA 55.4% 55.7% 61.1% 65.1% 0.3% 3.9%

The results were as expected. In all cases the median scores have improved in the first six months of FY 2016. The average increase was 2.8%. This compares to the prior year, looking at the same two time periods, where the increases averaged 1.3%. This is less than half of the increase from the first six months under VBP. Clearly, agencies are stepping up their efforts in improving their VBP measure scores.

Agencies in each of the 9 states are competing against each other. Agencies not only have to improve their outcomes to generate higher TPS scores, but have to improve better than their competition to increase the opportunity for higher bonus payments under VBP. Benchmarking your scores to determine your relative position in your state will be very important in tracking your progress.

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About the Author
Chris Attaya
Chris Attaya
Vice President of Business Intelligence
With more than 28 years of experience in the home health and hospice industry, Chris is responsible for product development and helping clients achieve increased operational and financial performance.