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Many Frequently Used HHRGs Are Money Losers

Published on Wed May 26, 2004 Print Friendly and PDF PDF

Of the top 10 home health resource groups, number crunching reveals five were profitable, four produced losses and one was break even, reported Amanda Twiss, president of Seattle-based Out-come Concept Systems at the recent National Association For Home Care & Hospice's National Policy Conference in Washington.

The most profitable HHRG was C2F2S2, with $1,081.90 adjusted net revenue per episode. The other profitable HHRGs in the top 10 were C1F2S2 ($820.26), C0F2S2 ($551.84), C2F2S0 ($128.69) and C1F2S0 ($82.00), OCS data showed.

C1F1S0 produced nearly break-even results, with an adjusted net revenue of $0.65. C0F0S0 was the heaviest loser among the top 10 HHRGs, costing agencies an average of $170.07 ANR per episode, Twiss said. The other loss-producing HHRGs were C2F1S0 (losing $70.93), C0F1S0 (losing $65.72) and C0F2S0 (losing $43.56).

Four of the five most profitable of the top 10 frequently used HHRGs contain a clinical score of "1" or "2," Twiss reported. The most profitable of all HHRGs is C3F1S3 ($1427.20), according to OCS agency data.

  • Home health quality measures are under consideration by a National Quality Forum home health panel. The NQF's Home Health Steering Committee is set to begin the process at a May 25 meeting. Information on the project, which aims to endorse a set of measures for gauging home health quality, is at www.qualityforum.org. Scroll down to Project Sum-maries and click on Home Health Measures Project.

  • Watch out for rehab facility components coming to a critical access hospital near you. When filling out M0175, HHAs may want to keep in mind that CAHs now will be allowed to set aside units of up to 10 beds each to be used for inpatient rehabilitation and psychiatric services.

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