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Home health stocks take a dive over CMS’ proposed payment cuts
Modern Healthcare

Publicly traded home health companies continued to take a beating in the markets Monday because of the CMS‘ June 27 proposal to drop payments by the maximum amount suggested under the Patient Protection and Affordable Care Act. The healthcare law calls for the CMS to “rebase” home health payments through 2017, and shareholders had hoped the final cut would be softer than the proposed 14% maximum rate reduction, which will be phased in evenly over four years. But the industry appears unlikely to get the break it was hoping for—with the first 3.5% reduction proposed for 2014.