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Avalere Health LLC | The intersection of business strategy and public policy Home Health Chartbook September 2012 Avalere Health LLC

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Page 1: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Avalere Health LLC | The intersection of business strategy and public policy

Home Health Chartbook

September 2012 Avalere Health LLC

Page 2: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

© Avalere Health LLC Page 2

Table of Contents

1.  National Overview 2.  Demographics of Home Health Users

1.  Demographics of Home Health Users by Sex 2.  Demographics of Home Health Users by Dual Eligible Status

3.  Clinical Profile of Home Health Users 4.  Home Health Agency Workforce 5.  Organizational Trends in Home Health 6.  Economic Contribution of Home Health Agencies 7.  Outcomes

1.  Re-hospitalizations Among Post-Acute Care Users

2.  Quality of Home Health Care 8.  National Trends 9.  Appendix A: Readmission Rate Methodology 10.  Appendix B: Clinically Appropriate and Cost-Effective Placement (CACEP) Study

Page 3: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Section 1: National Overview

The intersection of business strategy and public policy

Page 4: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

National Overview

Chart 1.1: Percentage of Medicare Beneficiaries Discharges to Post-Acute Care (PAC) Following an Inpatient Stay, 2008

Source: RTI International. “Post-Acute Care Episodes Expanded Analytic File: Data Chart Book.” 2011.

38.7%

(659,549)

61.3% (1,046,245)

Discharged to PAC

All Other Discharges

Page 5: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

National Overview

Chart 1.2: Percentage of Medicare Beneficiaries over 65 with Chronic Conditions by Number of Chronic Conditions, 2010

7.8

16.3

23.6

21.4

15.7 15.2

0

5

10

15

20

25

0 CCs 1 CC 2 CCs 3 CCs 4 CCs 5+ CCs

Perc

ent

Source: Medicare Current Beneficiary Survey, Access to Care file, 2010

Page 6: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

National Overview

Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010

1.3

1.7

2.4

2.9

7.0

12.5

12.6

16.3

18.7

20.4

21.0

24.8

33.4

55.7

66.9

0 10 20 30 40 50 60 70 80

Parkinsons Disease

Broken Hip

Other Mental Illness

Alzheimers

Congestive Heart Failure

Depression

Myocardial Infarction

Pulmonary Disease**

Other Cancer

Skin Cancer

Osteoporosis

Diabetes

Other Heart Conditions

Arthritis*

Hypertension

Percent Source: Medicare Current Beneficiary Survey, Access to Care file, 2010 *Includes rheumatoid and non-rheumatoid arthritis. **Includes emphysema, asthma, and chronic obstructive pulmonary disease (COPD).

Page 7: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

National Overview

Chart 1.4: Number of Medicare Beneficiaries over 65 with Chronic Conditions by Type of Condition, in Millions, 2010

0.5

0.6

0.9

1.1

2.6

4.6

4.6

6.0

6.9

7.5

7.7

9.1

12.2

20.4

24.5

0 5 10 15 20 25 30

Parkinsons Disease

Broken Hip

Other Mental Illness

Alzheimers

Congestive Heart Failure

Depression

Myocardial Infarction

Pulmonary Disease**

Other Cancer

Skin Cancer

Osteoporosis

Diabetes

Other Heart Conditions

Arthritis*

Hypertension

Millions Source: Medicare Current Beneficiary Survey, Access to Care file, 2010 *Includes rheumatoid and non-rheumatoid arthritis. ** Includes emphysema, asthma, and chronic obstructive pulmonary disease (COPD).

Page 8: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Section 2: Demographics of Home Health Users

The intersection of business strategy and public policy

Page 9: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users

Chart 2.1: Age Distribution of Home Health Users and All Medicare Beneficiaries, 2010

16.2%

43.3%

28.4%

12.2%

16.0%

25.5%

33.5%

24.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Age <65 Age 65-74 Age 75-84 Age 85+

All Medicare Beneficiaries Home Health Users

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

Page 10: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users

Chart 2.2: Gender Distribution of Home Health Users and All Medicare Beneficiaries, 2010

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

35.3%

64.7%

Home Health Users

Male Female

44.7% 55.3%

All Medicare Beneficiaries

Page 11: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users

Chart 2.3: Marital Status of Home Health Users and All Medicare Beneficiaries, 2010

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

34.1%

41.8%

24.1%

Home Health Users

Married Widowed Separated, Divorced, Never Married

50.7%

26.1%

23.1%

All Medicare Beneficiaries

Page 12: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users

Chart 2.4: Race of Home Health Users, Skilled Nursing Facility Users, and All Medicare Beneficiaries 2010

82.8%

9.8% 7.0%

81.1%

13.3%

5.4%

84.8%

10.8%

4.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

White Black Other Race/Ethnicity

All Medicare Beneficiaries Home Health Users Skilled Nursing Facility Users

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

Page 13: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users

Chart 2.5: Income Distribution of Home Health Users, Skilled Nursing Facility Users, and All Medicare Beneficiaries, 2010

50.4% 48.7%

64.7%

35.1%

58.5%

40.6%

0%

10%

20%

30%

40%

50%

60%

70%

Under $25,000 Per Year $25,000 Per Year Or More

All Medicare Beneficiaries Home Health Users Skilled Nursing Facility Users

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

Page 14: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users

Table 2.6: Selected Characteristics of Medicare Home Health Users and All Medicare Beneficiaries, 2010

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010. *ADL = Activities of daily living, such as eating, dressing, and bathing. Limitations with at least 2 ADLs is is considered a measure of moderate to severe disability and is often the eligibility threshold for a nursing home level of care. **In 2010, FPL for a household of 1 was $10,890, a household of 2 was $14,710, a household of 3 was $18,530, and household of 4 was $22,350.

All Medicare Home Health Users

All Medicare Beneficiaries

Over age 85 25.2% 12.3%

Live alone 38.9% 30.3%

Have 3 or more chronic conditions 86.0% 66.2%

Have 2 or more ADL limitations* 22.5% 5.5%

Report fair or poor health 46.5% 25.3%

Are in somewhat or much worse health than last year 44.5% 22.4%

Have incomes under 200% of the Federal Poverty Level (FPL)**

62.6% 48.9%

Have incomes under 100% of the Federal Poverty Level (FPL)**

30.2% 21.8%

Page 15: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Living Expense One-Person Elderly

Household Two-Person Elderly

Household All Elderly

Household Sizes

Housing $5,918 $7,230 $6,810

Food $2,305 $3,792 $3,265

Transportation $1,430 $3,593 $2,686

Health Care (out-of-pocket costs)

$1,823 $3,194 $2,387

Total $11,476 $17,809 $15,648

Table 2.7: Average Annual Living Expenses for Households with Incomes under 200 Percent of the Federal Poverty Level (FPL)** with at Least One Individual 65 Years or Older, 2010

Source: Avalere analysis of the 2010 Bureau of Labor Statistics Consumer Expenditure Survey. The analysis includes households with one or more individuals age 65 or older and annual incomes below 200% of the Federal Poverty Limit. *This analysis includes but is not limited to home health users. **200% of the Federal Poverty Level is equal to $21,660 for a one-person household and $29,140 for a two-person household.

Demographics of Home Health Users*

Page 16: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

53%

61%

0%

10%

20%

30%

40%

50%

60%

70%

One-Person Household Two-Person Household

Per

cent

of A

nnua

l Inc

ome

Chart 2.8: Average Annual Living Expenses**, as a Percentage of Income, for One- and Two-Person Households at 200%** of the Federal Poverty Limit with at Least One Individual 65 Years or Older, 2010

Source: Avalere analysis of the 2010 Bureau of Labor Statistics Consumer Expenditure Survey. 2010 average annual living expenses are for one-person or two-person households, respectively, under 200 percent of the Federal Poverty Limit with at least one individual 65 years or older. *This analysis includes but is not limited to home health users. **$21,660 for a one-person household; $29,140 for a two-person household.

Demographics of Home Health Users*

Page 17: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users by Sex

Chart 2.9: Age Distribution of Home Health Users by Sex, 2010

20.5%

27.3%

33.2%

19.0%

13.5%

24.6%

33.7%

28.2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Age <65 Age 65-74 Age 75-84 Age 85+

Male Female

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

Page 18: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users by Sex

Chart 2.10: Marital Status of Home Health Users by Sex, 2010

47.3%

22.1%

30.6%

26.9%

52.5%

20.5%

0%

10%

20%

30%

40%

50%

60%

Married Widowed Separated, Divorced, Never Married

Male Female

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

Page 19: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users by Sex

Chart 2.11: Income Distribution of Home Health Users by Sex, 2010

58.4%

41.4%

68.1%

31.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Under $25,000 Per Year $25,000 Per Year Or More

Male Female

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

Page 20: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users by Dual Eligible Status

Chart 2.12: Age Distribution of Home Health Users by Dual Eligible Status, 2010

33.9%

23.0%

30.8%

12.2%

7.8%

26.7%

34.7%

30.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Age <65 Age 65-74 Age 75-84 Age 85+

Dual Eligible Non-Dual Eligible

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

Dual eligibles are defined as individuals with any state buy-in at any point during the year.

Page 21: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users by Dual Eligible Status

Chart 2.13: Marital Status of Home Health Users by Dual Eligible Status, 2010

19.0%

37.1%

43.9%

41.0% 43.9%

15.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Married Widowed Separated, Divorced, Never Married

Dual Eligible Non-Dual Eligible

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

Dual eligibles are defined as individuals with any state buy-in at any point during the year.

Page 22: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users by Dual Eligible Status

Chart 2.14: Percentage of Home Health Users by Dual Eligible Status and Number of Chronic Conditions (CCs), 2010

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

Dual eligibles are defined as individuals with any state buy-in at any point during the year.

18.6%

17.9%

16.8%

46.7%

Dual Eligibles

0-2 CCs 3 CCs 4 CCs 5 or more CCs

22.3%

17.3%

23.6%

36.8%

Non-Dual Eligibles

Page 23: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Demographics of Home Health Users by Dual Eligible Status

Chart 2.15: Percentage of Home Health Users by Dual Eligible Status and Number of Activities of Daily Living (ADLs) with Which They Require Assistance, 2010

Source: Avalere analysis of the Medicare Current Beneficiary Survey, Access to Care file 2010

Dual eligibles are defined as individuals with any state buy-in at any point during the year. Beneficiaries were classified as requiring assistance with an ADL (bathing, walking, transferring, dressing, toileting, and eating) if they reported needing at least stand-by assistance with that ADL.

53.9%

14.3%

14.2%

17.7%

Dual Eligibles

0 ADLs 1 ADL 2-3 ADLs 4 or more ADLs

64.4% 13.5%

11.0%

11.1%

Non-Dual Eligibles

Page 24: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Section 3: Clinical Profile of Home Health Users

The intersection of business strategy and public policy

Page 25: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Clinical Profile of Home Health Users

MS-DRG Number of Home Health Part A Claims, 2010

Percent of Total Home Health Part A Claims, 2010

Major Joint Replacement or Reattachment of Lower Extremity w/o MCC 211,779 10.77% Heart Failure & Shock w MCC 46,134 2.35% Septicemia or Severe Sepsis w/o MV 96+ Hours w MCC 44,685 2.27% Heart Failure & Shock w CC 36,375 1.85% Hip & Femur Procedures except Major Joint w CC 31,145 1.58% Kidney & Urinary Tract Infections w/o MCC 29,279 1.49% Intracranial Hemorrhage or Cerebral Infarction w CC 29,052 1.48% Simple Pneumonia & Pleurisy w CC 27,884 1.42% Chronic Obstructive Pulmonary Disease w MCC 27,569 1.40% Cellulitis w/o MCC 26,490 1.35% Simple Pneumonia & Pleurisy w MCC 26,015 1.32% Syncope & Collapse 22,047 1.12% Esophagitis, Gastroenteritis & Miscellaneous Digestive Disorders w/o MCC 21,776 1.11% Chronic Obstructive Pulmonary Disease w CC 21,486 1.09% Nutritional & Misc Metabolic Disorders w/o MCC 20,694 1.05% Spinal Fusion except Cervical w/o MCC 18,669 0.95% Renal Failure w CC 18,617 0.95% Major Small & Large Bowel Procedures w CC 17,963 0.91% Major Small & Large Bowel Procedures w MCC 17,687 0.90% Medical Back Problems w/o MCC 16,926 0.86% Total for Top 20 MS-DRGs 712,272 36.23%

Chart 3.1: Top 20 Most Common Diagnosis Related Groups (DRGs) for Beneficiaries Discharged from Hospital to Part A Home Health Episodes, 2010

Source: Avalere Health, LLC analysis of Medicare Standard Analytic Files, 2010 Data for beneficiaries with a Part A home health episode and a prior short-term acute care hospital stay in 2010. Note: CC is complication or comorbidity. MCC is major complication or comorbidity.

Page 26: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Clinical Profile of Home Health Users

ICD-9 Diagnosis Number of Home Health Claims, 2010

Percent of Total Home Health Claims, 2010

Diabetes Mellitus 728,297 10.44% Essential Hypertension 515,637 7.39% Care Involving Use of Rehabilitation Procedures 458,550 6.57% Other Orthopedic Aftercare 451,057 6.47% Other and Unspecified Aftercare 429,673 6.16% Heart Failure 379,612 5.44% Chronic Ulcer of Skin 260,700 3.74% Chronic Bronchitis 195,723 2.81% Late Effects of Cerebrovascular Disease 191,813 2.75% Osteoarthritis and Allied Disorders 184,325 2.64% Cardiac Dysrhythmias 130,038 1.86% Disorders of Muscle, Ligament, and Fascia 126,698 1.82% Symptoms Involving Nervous and Musculoskeletal Systems 123,612 1.77% Other Deficiency Anemias 101,513 1.46% Other Complications of Procedures, Not Elsewhere Classified 92,919 1.33% Other Forms of Chronic Ischemic Heart Disease 90,136 1.29% Fitting and Adjustment of Other Device 83,509 1.20% Other Cellulitis and Abscess 80,269 1.15% Other Disorders of Urethra and Urinary Tract 71,650 1.03% Other Cerebral Degenerations 71,222 1.02% Total for Top 20 Primary ICD-9 Diagnoses 4,766,953 68.33%

Chart 3.2: Top 20 Primary International Classification of Diseases, Version 9 (ICD-9) Diagnoses for Home Health Claims, 2010

Source: Avalere Health, LLC analysis of Medicare Standard Analytic Files, 2010

Page 27: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Section 4: Home Health Care Services Industry Workforce

The intersection of business strategy and public policy

Page 28: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Home Health Care Services Industry Workforce

Chart 4.1: Number of Workers in Specified Occupations Employed in the Home Health Care Services Industry, 2011

338,650

156,730

37,880

73,760

9,580 16,930

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Home Health Aides

Registered Nurses

Therapists Licensed Practical/Vocational Nurses

Therapy and Medical

Assistants

Social Workers

Source: Bureau of Labor Statistics, U.S. Department of Commerce. May 2011.

Page 29: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Home Health Care Services Industry Workforce

Chart 4.2: Number of Workers in Specified Occupations Employed in the Home Health Care Services Industry, 2010 and 2020 (projected)

147,600

35,300

70,000

7,200 18,000

228,800

62,000

120,600

12,900

31,000

0

50,000

100,000

150,000

200,000

250,000

Registered Nurses Therapists Licensed Practical/Vocational Nurses

Therapy and Medical

Assistants

Social Workers

2010 2020

Source: Bureau of Labor Statistics, U.S. Department of Commerce

Page 30: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Home Health Care Services Industry Workforce

Chart 4.3: Total Number of Home Health Aides Employed in the Home Health Care Services Industry, 2001-2011

189,570 188,800 191,870 208,130

224,410 237,620

254,120 281,840

331,940 342,500 338,650

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Bureau of Labor Statistics, U.S. Department of Commerce

Page 31: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Home Health Care Services Industry Workforce

Chart 4.4: Number of Home Health Aides Employed in the Home Health Care Services Industry, 2010 and 2020 (projected)

345,300

665,900

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2010 2020

Home Health Aides

Source: Bureau of Labor Statistics Employment Projections program, U.S. Department of Commerce

Page 32: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Section 5: Organizational Trends in Home Health

The intersection of business strategy and public policy

Page 33: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Organizational Trends in Home Health

Chart 5.1: Number of Medicare-Certified Home Health Agencies (HHAs), 1997-2010

4,613

9,678

-

2,000

4,000

6,000

8,000

10,000

12,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Hom

e H

ealth

Age

ncie

s

Source: Medicare Cost Reports from the Centers for Medicare and Medicaid Services

In 2010, 9.7% of HHAs provided private duty nursing in addition to

Medicare-covered services

Page 34: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Organizational Trends in Home Health

Chart 5.2: Number of Medicare Part A and Part B Home Health Episodes, in Millions, 2006-2010

2.34 m 2.37 m 2.43 m 2.44 m 2.48 m

3.18 m 3.42 m 3.75 m

4.13 m 4.43 m

0

1

2

3

4

5

6

7

2006 2007 2008 2009 2010

Epi

sode

s (M

illio

ns)

Part A Part B

Source: Avalere Health, LLC analysis of Medicare Standard Analytic Files, 2006 - 2010

Page 35: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Organizational Trends in Home Health

1.71 m 1.70 m 1.71 m 1.70 m 1.72 m

1.51 m 1.55 m 1.63 m 1.76 m 1.89 m

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2006 2007 2008 2009 2010

Ben

efic

iarie

s (M

illio

ns)

Part A Part B

Chart 5.3: Number of Medicare Part A and Part B Beneficiaries with a Home Health Episode, in Millions, 2006-2010

Source: Avalere Health, LLC analysis of Medicare Standard Analytic Files, 2006 - 2010 Note: Beneficiaries are double-counted if they had both a Part A and a Part B home health episode during the year.

Page 36: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

Organizational Trends in Home Health Chart 5.4: Number of Medicare Beneficiaries with a Home Health Episode, by State, 2010

State Number of Beneficiaries

Alabama 68,931 Alaska 2,299 Arizona 34,946 Arkansas 36,047 California 260,369 Colorado 32,820 Connecticut 52,082 Delaware 11,767 D.C. 6,139 Florida 342,570 Georgia 85,196 Hawaii 2,953 Idaho 11,090 Illinois 193,664 Indiana 61,655 Iowa 24,122 Kansas 23,119 Kentucky 59,564 Louisiana 77,969 Maine 19,617 Maryland 55,803 Massachusetts 106,650 Michigan 169,975 Minnesota 31,668 Mississippi 55,929 Missouri 67,061

State Number of Beneficiaries

Montana 6,822 Nebraska 14,377 Nevada 23,221 New Hampshire 19,264 New Jersey 96,660 New Mexico 16,611 New York 178,679 North Carolina 103,889 North Dakota 4,372 Ohio 117,082 Oklahoma 68,143 Oregon 21,161 Pennsylvania 143,160 Rhode Island 12,259 South Carolina 51,368 South Dakota 4,644 Tennessee 84,688 Texas 366,306 Utah 18,255 Vermont 9,824 Virginia 84,676 Washington 40,973 West Virginia 21,044 Wisconsin 34,621 Wyoming 3,416 Total U.S. 3,453,971

Source: Avalere Health, LLC analysis of Medicare Standard Analytic Files, 2006 - 2010

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Organizational Trends in Home Health

Chart 5.5: Number of Home Health Episodes per Medicare Home Health User by Part A, Part B, and All Claims, 2006-2010

1.37 1.39 1.42 1.44 1.44

2.10 2.20

2.30 2.34 2.34

1.82 1.88

1.96 2.01 2.02

0

1

2

2006 2007 2008 2009 2010

Epis

odes

per

Ben

efic

iary

Part A Part B All Claims

Source: Avalere Health, LLC analysis of Medicare Standard Analytic Files, 2006 – 2010 Note: These data reflect the number of home health episodes for Medicare beneficiaries with at least one Part A or Part B home health episode.

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Organizational Trends in Home Health

Chart 5.6: Number of Home Health Visits per Episode by Part A, Part B, and All Claims, 2006-2010

15.7 15.8 15.6 16.1 16.1

19.9

21.7 21.6 21.2

18.6 18.3 19.5 19.4 19.4

17.9

0

5

10

15

20

25

2006 2007 2008 2009 2010

Visi

ts p

er E

piso

de

Part A Part B All Claims Source: Avalere Health, LLC analysis of Medicare Standard Analytic Files, 2006 – 2010

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Section 6: Economic Contribution of Home Health

Agencies

The intersection of business strategy and public policy

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Economic Contribution of Home Health Agencies Chart 6.1: Impact of Home Health on Jobs, by State, 2010

Note: This economic impact analysis conducted by Avalere Health used U.S. Bureau of Economic Analysis multipliers in conjunction with employment and wage data from the U.S. Bureau of Labor Statistics and revenue data from CMS Medicare cost reports to determine the indirect effects of home health industry expenditures, including the number of jobs in other sectors supported by the home health industry.

State Number of

Home Health Jobs

Multiplier for Employment

Total Jobs Created by

Home Health Industry

Alabama 11,611 1.5758 18,297 Alaska 1,837 1.2714 2,336 Arizona 18,870 1.4602 27,554 Arkansas 6,556 1.3294 8,716 California 62,726 1.5408 96,648 Colorado 13,767 1.4562 20,048 Connecticut 13,296 1.456 19,359 Delaware 2,681 1.4387 3,857 D.C. 3,836 1.1203 4,297 Florida 64,249 1.5751 101,199 Georgia 18,999 1.6012 30,421 Hawaii 2,705 1.352 3,657 Idaho 5,864 1.3063 7,660 Illinois 34,354 1.5291 52,531 Indiana 16,451 1.4961 24,612 Iowa 6,630 1.3107 8,690 Kansas 7,116 1.3046 9,284 Kentucky 8,543 1.623 13,865 Louisiana 21,710 1.5042 32,656 Maine 3,612 1.4697 5,309 Maryland 12,481 1.4979 18,695 Massachusetts 28,172 1.4697 41,404 Michigan 34,469 1.4907 51,383 Minnesota 19,054 1.3687 26,079 Mississippi 7,124 1.5404 10,974 Missouri 17,788 1.4655 26,068

State Number of

Home Health Jobs

Multiplier for Employment

Total Jobs Created by

Home Health Industry

Montana 2,261 1.3255 2,997 Nebraska 2,774 1.3295 3,688 Nevada 4,709 1.4888 7,011 New Hampshire 3,985 1.4294 5,696 New Jersey 34,686 1.4508 50,322 New Mexico 11,036 1.3438 14,830 New York 113,195 1.3322 150,798 North Carolina 42,873 1.3976 59,919 North Dakota 468 1.2414 581 Ohio 53,764 1.4507 77,995 Oklahoma 19,141 1.4179 27,140 Oregon 3,550 1.5062 5,347 Pennsylvania 36,615 1.585 58,035 Rhode Island 4,512 1.4056 6,342 South Carolina 9,434 1.4864 14,023 South Dakota 885 1.2678 1,122 Tennessee 15,939 1.6487 26,279 Texas 225,014 1.4329 322,423 Utah 5,804 1.699 9,861 Vermont 2,206 1.3777 3,039 Virginia 22,535 1.3806 31,112 Washington 9,411 1.4956 14,075 West Virginia 6,248 1.3576 8,482 Wisconsin 11,269 1.4386 16,212 Wyoming 533 1.248 665 Total U.S. 1,986,905 N/A 2,860,808

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Economic Contribution of Home Health Agencies Chart 6.2: Impact of Home Health on Labor Income, by State, 2010

Note: This economic impact analysis conducted by Avalere Health used U.S. Bureau of Economic Analysis multipliers in conjunction with employment and wage data from the U.S. Bureau of Labor Statistics and revenue data from CMS Medicare cost reports to determine the indirect effects of home health industry expenditures, including the number of jobs in other sectors supported by the home health industry.

State Home Health Total Wages

(in 000s)

Multiplier for Earnings

Total Impact of Home Health

Payroll on Labor Income

Alabama $411,476 1.4976 $616,226,458 Alaska $42,283 1.3612 $57,555,620 Arizona $156,631 1.5487 $242,574,430 Arkansas $156,949 1.4152 $222,114,225 California $2,015,514 1.6564 $3,338,497,390 Colorado $376,519 1.6464 $619,900,882 Connecticut $489,163 1.514 $740,592,782 Delaware $101,312 1.4384 $145,727,181 D.C. $96,973 1.1791 $114,340,864 Florida $2,268,745 1.5891 $3,605,262,680 Georgia $617,452 1.6395 $1,012,312,554 Hawaii $66,070 1.4941 $98,715,187 Idaho $113,667 1.3768 $156,496,726 Illinois $1,067,331 1.6761 $1,788,953,489 Indiana $434,657 1.5254 $663,025,788 Iowa $187,723 1.3409 $251,717,771 Kansas $169,984 1.386 $235,597,824 Kentucky $324,020 1.5047 $487,552,894 Louisiana $658,879 1.488 $980,411,952 Maine $103,826 1.4983 $155,562,496 Maryland $477,636 1.5333 $732,359,279 Massachusetts $998,967 1.5785 $1,576,869,410 Michigan $1,044,183 1.5865 $1,656,596,330 Minnesota $444,166 1.5479 $687,524,551 Mississippi $268,050 1.4144 $379,129,920 Missouri $504,547 1.5621 $788,152,869

State Home Health

Total Wages (in 000s)

Multiplier for Earnings

Total Impact of Home Health

Payroll on Labor Income

Montana $48,708 1.3767 $67,056,304 Nebraska $91,476 1.3416 $122,724,202 Nevada $180,850 1.4475 $261,780,375 New Hampshire $127,130 1.5193 $193,148,609 New Jersey $939,652 1.6183 $1,520,638,832 New Mexico $232,062 1.4287 $331,546,979 New York $3,234,944 1.472 $4,761,837,568 North Carolina $932,644 1.5437 $1,439,722,543 North Dakota $13,972 1.2979 $18,134,259 Ohio $1,271,053 1.6122 $2,049,191,647 Oklahoma $471,061 1.5035 $708,240,214 Oregon $107,920 1.5214 $164,189,488 Pennsylvania $1,295,918 1.6321 $2,115,067,768 Rhode Island $127,125 1.4989 $190,547,663 South Carolina $257,027 1.547 $397,620,769 South Dakota $17,114 1.2896 $22,070,214 Tennessee $594,614 1.605 $954,355,470 Texas $4,291,072 1.6628 $7,135,194,522 Utah $180,263 1.618 $291,665,534 Vermont $61,828 1.3971 $86,379,899 Virginia $580,621 1.5392 $893,691,843 Washington $291,849 1.552 $452,949,648 West Virginia $153,695 1.3927 $214,051,027 Wisconsin $290,186 1.5256 $442,707,762 Wyoming $14,471 1.2794 $18,514,197 Total U.S. $28,759,820 N/A $45,206,596,259

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Economic Contribution of Home Health Agencies Chart 6.3: Impact of Home Health on Output, by State, 2010

Note: This economic impact analysis conducted by Avalere Health used U.S. Bureau of Economic Analysis multipliers in conjunction with employment and wage data from the U.S. Bureau of Labor Statistics and revenue data from CMS Medicare cost reports to determine the indirect effects of home health industry expenditures, including the number of jobs in other sectors supported by the home health industry.

State Home Health Expenditures

Multiplier for Output

Total Impact of Home Health Spending on

Output Alabama $569,455,490 2.0235 $1,152,293,184 Alaska $1,605,521,434 1.7605 $2,826,520,485 Arizona $447,178,798 2.0914 $935,229,738 Arkansas $296,305,266 1.8683 $553,587,128 California $3,114,722,424 2.3434 $7,299,040,528 Colorado $3,217,641,799 2.3077 $7,425,351,980 Connecticut $568,264,660 2.071 $1,176,876,111 Delaware $138,208,689 1.9025 $262,942,031 D.C. $101,292,466 1.2846 $130,120,302 Florida $3,056,380,253 2.1718 $6,637,846,633 Georgia $373,490,977 2.2989 $858,618,407 Hawaii $21,762,056 1.9948 $43,410,949 Idaho $69,097,171 1.7576 $121,445,188 Illinois $1,667,604,168 2.3806 $3,969,898,482 Indiana $413,616,844 2.0914 $865,038,268 Iowa $331,636,488 1.7258 $572,338,251 Kansas $156,666,090 1.8239 $285,743,282 Kentucky $147,680,185 2.0441 $301,873,066 Louisiana $2,474,339,845 1.9632 $4,857,623,984 Maine $188,084,331 2.0059 $377,278,360 Maryland $492,507,247 2.061 $1,015,057,436 Massachusetts $2,341,731,739 2.1685 $5,078,045,276 Michigan $1,381,201,667 2.1816 $3,013,229,557 Minnesota $318,918,950 2.1281 $678,691,417 Mississippi $638,886,446 1.8568 $1,186,284,353 Missouri $495,024,218 2.1577 $1,068,113,755

State Home Health Expenditures

Multiplier for Output

Total Impact of Home Health Spending on

Output Montana $75,339,439 1.7735 $133,614,495 Nebraska $109,050,471 1.7135 $186,857,982 Nevada $1,569,417,687 1.9147 $3,004,964,045 New Hampshire $172,719,184 2.0366 $351,759,890 New Jersey $410,487,707 2.2832 $937,225,533 New Mexico $1,519,105,727 1.8549 $2,817,789,213 New York $2,711,920,934 2.0241 $5,489,199,163 North Carolina $675,565,452 2.1121 $1,426,861,791 North Dakota $3,467,651 1.6213 $5,622,103 Ohio $2,634,112,847 2.2534 $5,935,709,889 Oklahoma $493,129,198 2.015 $993,655,334 Oregon $97,230,090 2.0595 $200,245,370 Pennsylvania $1,209,772,013 2.2965 $2,778,241,428 Rhode Island $100,373,901 2.0129 $202,042,625 South Carolina $145,104,676 2.1414 $310,727,153 South Dakota $15,820,742 1.6239 $25,691,303 Tennessee $597,579,273 2.2537 $1,346,764,408 Texas $4,254,548,784 2.368 $10,074,771,521 Utah $1,654,605,090 2.27 $3,755,953,554 Vermont $103,112,427 1.8162 $187,272,790 Virginia $506,251,391 2.1116 $1,069,000,437 Washington $222,736,007 2.1384 $476,298,677 West Virginia $58,056,458 1.8084 $104,989,299 Wisconsin $315,807,811 2.0666 $652,648,422 Wyoming $18,051,412 1.5947 $28,786,587 Total U.S. $44,300,586,073 N/A $95,189,191,162

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Section 7: Outcomes

The intersection of business strategy and public policy

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Outcomes: Rehospitalization Among Post-Acute Care Users

MS-DRG Percent of Home Health

Users Rehospitalized Within 30 Days

Percent of Skilled Nursing Facility Users Rehospitalized

Within 30 Days

Major Joint Replacement or Reattachment of Lower Extremity w/o MCC 4.33% 8.29% Septicemia or Severe Sepsis w/o MV 96+ Hours w MCC 24.01% 25.79% Heart Failure & Shock w MCC 29.18% 29.76% Kidney & Urinary Tract Infections w/o MCC 19.83% 16.42% Heart Failure & Shock w CC 26.73% 25.25% Hip & Femur Procedures except Major Joint w CC 9.67% 12.99% Intracranial Hemorrhage or Cerebral Infarction w CC 15.35% 17.79% Simple Pneumonia & Pleurisy w CC 18.78% 19.21% Simple Pneumonia & Pleurisy w MCC 22.54% 24.85% Nutritional & Miscellaneous Metabolic Disorders w/o MCC 22.89% 17.85% Chronic Obstructive Pulmonary Disease w MCC 24.69% 26.54% Kidney & Urinary Tract Infections w MCC 23.99% 20.86% Cellulitis w/o MCC 14.78% 16.02% Renal Failure w CC 25.17% 23.19% Syncope & Collapse 16.27% 15.70% Esophagitis, Gastroenteritis & Misc. Digestive Disorders w/o MCC 21.86% 18.21% Chronic Obstructive Pulmonary Disease w CC 25.44% 24.13% Renal Failure w MCC 30.03% 27.72% Respiratory Infections & Inflammations w MCC 27.32% 26.18% Septicemia or Severe Sepsis w/o MV 96+ hours w/o MCC 19.84% 18.77% Average Rate Across All MS-DRGs 19.21% 20.27%

Chart 7.1: 30-Day Rehospitalization Rates for Top 20 Most Common DRGs Discharged from Hospital to Selected Post Acute Care (PAC) Settings, by Setting, 2010

Source: Avalere Health, LLC, analysis of Medicare Standard Analytic Files, 2010 Note: CC is complication or comorbidity. MCC is major complication or comorbidity.

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Outcomes: Quality of Home Health Care

Measure Percent

Checked patients for pain 98

Treated heart failure symptoms 98

Checked patients for the risk of developing pressure sores (bed sores) 98

Checked patients for depression 97

Treated patients’ pain 97

Checked patients’ risk of falling 95

Included treatments to prevent pressure sores (bed sores) in the plan of care 95

Took doctor-ordered action to prevent pressure sores (bed sores) 94

For diabetic patients, got doctor’s orders, gave and educated about foot care 91

Began care in timely manner 90

Taught patients (or their family caregivers) about their drugs 89

Determined whether patients received a flu shot for the current flu season 67

Determined whether patients received a pneumococcal vaccine (pneumonia shot) 65

Chart 7.2: National Averages for How Often Home Health Team Met Quality Measures Related to Patient Care, 2012

Source: Medicare Home Health Compare. April 19, 2012.

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Outcomes: Quality of Home Health Care Chart 7.3: National Averages for Patient Outcomes while in Home Health Care, 2012

Source: Medicare Home Health Compare. April 19, 2012.

Measure Percent

Wounds improved or healed after operation 88

Had less pain when moving around 66

Got better at bathing 65

Breathing improved 63

Got better at walking or moving around 56

Got better at getting in and out of bed 54

Got better at taking drugs correctly by mouth 47

Had to be admitted to hospital 27

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Section 8: National Trends

The intersection of business strategy and public policy

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National Trends

Chart 8.1: National Healthcare Expenditures, Billions of Dollars, 1980-2010

$256

$2,594

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Bill

ions

of D

olla

rs

Source: Centers for Medicare and Medicaid Services, National Healthcare Expenditures Accounts, 2012

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National Trends

Chart 8.2: National Healthcare Expenditures, as a Percentage of Gross Domestic Product, 1980-2010 9.

2%

9.5%

10.3

%

10.4

%

10.3

%

10.5

%

10.7

%

11.0

%

11.4

%

11.8

%

12.5

%

13.2

%

13.5

%

13.8

%

13.7

%

13.9

%

13.8

%

13.7

%

13.7

%

13.8

%

13.8

%

14.5

%

15.4

%

15.9

%

16.0

%

16.1

%

16.2

%

16.4

%

16.8

%

17.9

%

17.9

%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Perc

ent o

f GD

P

Source: Centers for Medicare and Medicaid Services, National Healthcare Expenditures Accounts, 2012

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National Trends

Chart 8.3: Projected National Healthcare Expenditures, Billions of Dollars, 2011-2021 $

2,69

5

$2,

809

$2,

916

$3,

130

$3,

308

$3,

514

$3,

723

$3,

952

$4,

207

$4,

487

$4,

781

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Bill

ions

of D

olla

rs

Source: Centers for Medicare and Medicaid Services, National Healthcare Expenditures Projections, 2012

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National Trends

Chart 8.4: Total Medicare Enrollees, in Millions, 1980-2010

Source: Centers for Medicare & Medicaid Services. Medicare Enrollment: National Trends, 1966 – 2010

28.5

47.2

0.0

10.0

20.0

30.0

40.0

50.0

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Mill

ions

of E

nrol

lees

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National Trends

Chart 8.5: Projected Medicare Enrollees, in Millions, 2013-2021

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Medicare Enrollment, 1970 – 2085. Data released April 23, 2012.

52.4

65.8

0

10

20

30

40

50

60

70

2013 2014 2015 2016 2017 2018 2019 2020 2021

Mill

ions

of E

nrol

lees

Page 53: 20121126 Home Health Chartbook FINAL - ahhqi.org · National Overview Chart 1.3: Percentage of Medicare Beneficiaries over 65 with Selected Chronic Conditions, 2010 55.7 1.3 1.7 2.4

National Trends

Chart 8.6: Percentage of Medicare Beneficiaries Enrolled in Medicare Advantage, 1999-2010

Source: Kaiser State Health Facts. Total Medicare Advantage Enrollment, 1999-2011.

16.8% 16.8%

15.0%

13.3% 12.5% 12.3%

13.0%

16.6%

19.1%

20.6%

22.2% 23.3%

0%

5%

10%

15%

20%

25%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Perc

ent E

nrol

led

in M

edic

are

Adv

anta

ge

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National Trends

Chart 8.7: Total Medicare Post-acute Care Expenditures, Billions of Dollars, 2001-2010

Source: Medicare Payment Advisory Commission. A Data Book: Health Care Spending and the Medicare Program. June 2011.

$26.6

$32.6 $34.3 $37.5

$42.1 $43.5

$48.4 $52.1

$55.1 $57.2

$0

$10

$20

$30

$40

$50

$60

$70

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Bill

ions

of D

olla

rs

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Appendix A: Readmission Rate Methodology

The intersection of business strategy and public policy

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Methodology: Calculating Readmission Rates

The ACA methodology defines a readmission as an admission to a short-term acute care hospital (STACH) within 30 days of an initial, or 'index', admission to a STACH. To be considered an index admission, there must be no other STACH admission in the prior 30 days. These data are based on raw Medicare claims and no risk-based

or geographic adjustments have been applied.

Using the Affordable Care Act (ACA)

methodology, this episode of care results

in one 30-day readmission

Without defining index stays as above, this

episode of care results in two 30-day readmissions

Readmission within 30 days of

index stay

Day 70

60 days 30 days 0 days

Day 30 Day 50

Index stays must have no prior admission for

30 days

Index stay

End of 30 day window beginning

w/ index stay

Readmission within 30 days of a hospital admission

Readmission within 30 days of

a hospital admission

Hospital admission

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Appendix B: Dobson/DaVanzo Clinically Appropriate and Cost-Effective Placement (CACEP)

Study

The intersection of business strategy and public policy

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58 ©  2012  Dobson  DaVanzo  &  Associates,  LLC.  All  Rights  Reserved.  

 

MS-­‐DRGs  Ranked  by  Medicare  Episode  Payment  Show  Considerable  Overlap  by  First  Se@ng  

MS-­‐DRG   Med/Surg   Overall   HHA   SNF   IRF   LTCH  470:  Major  joint  replacement  or  reaFachment  of  lower  extremity  w/o  MCC   Surgical   1   1   1   1   34  871:  SepPcemia  or  severe  sepsis  w/o  MV  96+  hours  w  MCC   Medical   2   6   3   20   3  291:  Heart  failure  &  shock  w  MCC   Medical   3   2   7   29   9  003:  ECMO  or  trach  w  MV  96+  hrs  or  PDX  exc  face,  mouth  &  neck  w  maj  O.R.   Surgical   4   91   31   10   1  194:  Simple  pneumonia  &  pleurisy  w  CC   Medical   5   9   5   65   22  481:  Hip  &  femur  procedures  except  major  joint  w  CC   Surgical   6   73   2   3   53  292:  Heart  failure  &  shock  w  CC   Medical   7   3   14   63   37  065:  Intracranial  hemorrhage  or  cerebral  infarcPon  w  CC   Medical   8   29   6   2   30  392:  EsophagiPs,  gastroent  &  misc  digest  disorders  w/o  MCC   Medical   9   20   35   125   80  

Overall  Top  9  MS-­‐DRGs  Ranked  by  Medicare  Episode  Payment  for  Post-­‐Acute  Care  Episodes  by  Select  First  SeIng  (2007-­‐2009)  

Source:  Dobson  |  DaVanzo  analysis  of  research-­‐idenPfiable  5%  SAF  for  all  sites  of  service,  2007-­‐2009,  wage  index  adjusted  by  seang  and  geographic  region,  and  standardized  to  2009  dollars.  Medicare  Episode  Payment  includes  care  from  all  facility-­‐based  and  ambulatory  care  seangs  and  excludes  

beneficiary  co-­‐payments,  DME,  and  Part  D  payments.  

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First  SeIng  Number  of  Episodes  

Average  Medicare  Episode  Payment  

Difference  from  Overall  Payment  

HHA   366,140   $18,068     $5,411    

SNF   430,240   $26,861     ($3,382)  

IRF   128,680   $33,538     ($10,059)  

LTCH   1,080   $57,896     ($34,417)  

STACH   2,580   $30,302     ($6,823)  

Community   134,240   $17,340     $6,140    

Overall   1,062,960   $23,479     $0    

Medicare  Episode  Payment  for  MS-­‐DRG  470  (major  joint  replacement    w/o  MCC)  for  Post-­‐Acute  Care  Episodes  by  Select  First  SeIng  (2007-­‐2009)  

Source:  Dobson  |  DaVanzo  analysis  of  research-­‐idenPfiable  5%  SAF  for  all  sites  of  service,  2007-­‐2009,  wage  index  adjusted  by  seang  and  geographic  region,  and  standardized  to  2009  dollars.  All  episodes  have  been  extrapolated  to  reflect  the  universe  of  Medicare  beneficiaries.  Medicare  Episode  Payment  includes  care  from  all  facility-­‐based  and  ambulatory  care  seangs  and  excludes  beneficiary  co-­‐payments,  DME, and  Part  D  payments.

Note:  ER,  OP,  OP  Therapy,    Hospice  and  Other  IP  first  seang  episodes  are  not  included  in  the  overall.  

First  Se@ng  SelecBon  has  a  Material  Impact  on  Medicare  Program  Expenditures    Example:  MS-­‐DRG  470