Reports on the results of a national demonstration that tested whether paying home health agencies a fixed sum in advance for an episode of care would reduce use of services without adversely affecting quality of care. Finds that most prospectively paid agencies dramatically lowered their visits...

Notes that prospective payment led to sharp reductions in home health service use and no apparent effect on quality of care. Furthermore, the use of other Medicare-reimbursed services (such as hospital stays) did not increase, nor did the use of informal or other care. The new payment method...

For executive summary see "Regional Variation in Medicare Home Health: Taking a Closer Look." PP96-12. November 1996. Also may be downloaded from the Internet.