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Home Health Care Management & Practice
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An Analysis of the Home Health Marketplace: How Telehealth Technology May Assist Home Health Agencies with Changes in Home Care Delivery under the Prospective Payment System

Harvey Komet, MD

Western Region Humana Health Care Plans; University of Texas Health Science Center; Bexar County Hospital District; U.S. Air Force

Sweeping changes in Medicare policy may have removed the last significant obstacle to the widespread implementation of telehealth. On October 1, 2000, the Health Care Finance Administration (HCFA) implemented the Prospective Payment System (PPS), a reimbursement system based on the average cost of Medicare patient care for 60 days. The HCFA has since clarified that home care organizations may utilize telehealth technology in addition to home visits. This change in reimbursement policy is a necessary development, designed to provide reasonable controls on government spending while opening new opportunities to utilize more cost-efficient processes and technologies.

Key Words: Balanced Budget Act • home care • home health • interim payment system • Prospective Payment System • telehealth

Home Health Care Management & Practice, Vol. 13, No. 2, 142-148 (2001)
DOI: 10.1177/108482230101300209
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