The Final Evaluation Report on the National Home Health Prospective Payment Demonstration: Agencies Reduce Visits While Preserving Quality

Notes that prospective payment led to sharp reductions in home health service use and no apparent effect on quality of care. Furthermore, the use of other Medicare-reimbursed services (such as hospital stays) did not increase, nor did the use of informal or other care. The new payment method also led to considerable savings in the cost of care.