A First Look at Shifts in Community-Entry Home Health Following Medicare Payment Reform.

Publication date: Jul 01, 2026

Medicare-funded home health (HH) provides short-term nursing, physical therapy, and other services to over 3. 5 million older adults each year. Currently, half of HH episodes are “community-entry,” meaning the patient was referred without an immediately preceding hospitalization. The 2020 implementation of a new payment system-the Patient-Driven Groupings Model (PDGM)-reduced traditional Medicare reimbursement for community-entry HH (CEHH). We investigated shifts in CEHH care delivery following PDGM implementation. Cross-sectional study of national 2019 and 2021 linked HH claims, assessment, HH agency, and geographic data. Traditional Medicare beneficiaries receiving a CEHH episode in 2019 or 2021 (n = 577,602). HH is provided through clinician visits to the patient’s home; therefore, visits are the primary unit of care delivery. We modeled the number of visits overall and by service type (eg, nursing, physical therapy) using national data for CEHH patients pre-PDGM (ie, 2019) and post-PDGM (ie, 2021). Models adjust for relevant patient, HH agency, and geographic characteristics (including monthly county-level COVID-19 infection rates). Following PDGM, there was an 18% decrease in total visits received, with the largest decreases in the number of physical therapy (-13%), occupational therapy (-17%), and aide (-16%) visits. Reductions in visits were greatest at HH agencies with lower Medicare Advantage penetration (and thus, greater exposure to PDGM) and for-profit agencies. Findings raise questions about HH agencies’ ongoing ability to meet the needs of patients with complex, overlapping clinical and social needs following PDGM implementation. Ongoing monitoring of how these care delivery changes impact outcomes for CEHH patients is essential to ensure that HH can continue to help high-need older adults safely age in place.

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