What is the role of the Home Health Resource Group (HHRG) in HHPPS?

The Home Health Resource Group (HHRG) plays a crucial role in the Home Health Prospective Payment System (HHPPS) by establishing fixed rates based on historical data. This methodology ensures that payment rates for home health services are not based on the actual costs incurred for each individual patient but are instead standardized to streamline the reimbursement process.

The use of fixed rates helps to create a predictable environment for both providers and payers, allowing home health agencies to receive a consistent level of reimbursement depending on the specified categories of patient diagnoses and needs. By utilizing historical data, the HHRG classification system effectively reflects the average resources required to care for patients in different groups and assigns a corresponding payment rate.

This approach simplifies the billing process and helps to contain costs while encouraging efficiency and quality of care among providers, as agencies are incentivized to manage patient care within the fixed payment they receive.