Effect of Medicare prospective payment system on a home health agency: changes in patient population and services provided.

Data from a large home health agency was retrospectively reviewed to determine the effect of Medicare's Diagnosis Related Group (DRG) payment system on posthospital care. Variables included demographics, diagnoses, functional ability, frequency and type of services provided, and discharge status. An increase in the provision of rehabilitation and nursing services provided in the post-DRG population was found. No negative effects on patient outcomes, such as increases in emergency room visits, rehospitalization, or death, were found.