Skip to main content

The PDGM is a shift away from volume-driven home health payment to a model that focuses on the unique characteristics, needs, and goals of each patient.

Medicare’s Patient-Driven Groupings Model is a patient-centered payment system that places home health periods of care into more meaningful payment categories while eliminating the use of therapy service thresholds for adjusting payment for home health episodes. The system also moves payment from a single 60-day episode to 30- day periods of care, still retaining the 60-day certification and plan of care requirements.

There are several myths about the PDGM. Claims that the need for therapy will be diminished, that only patients discharged from an institutional setting will receive therapy, that the PDGM doesn’t support maintenance therapy, and that services cannot be delivered after the first 30 days are false.

Similarly, rumors that therapy will be covered only when a patient is assigned a clinical grouping of musculoskeletal rehabilitation or neurological/stroke rehabilitation, that Medicare will dictate which providers are qualified to provide certain types of therapy, and that home health visits will be dictated by the Low Utilization Payment Adjustment (LUPA) claims system are all untrue.


Recommended Content

What You Should Know About the Patient-Driven Groupings Model for Home Health

Mar 1, 2020 / Article

APTA, AOTA, ASHA: New Home Health Payment System No Reason to Compromise Care

Dec 20, 2019 / News

Skilled Maintenance Therapy Under Medicare

Dec 1, 2020

Medicare does indeed cover services to maintain or manage a beneficiary's current condition when no functional improvement is possible if the services are medically necessary and meet the skilled care requirements.


Additional Patient-Driven Groupings Model Content

Final 2024 Home Health Rule: Offsets Blunt Cuts; Lymphedema Benefit Now in Place

Nov 7, 2023 / Review

Market basket adjustments set the stage for a slight increase in 2024, and Medicare will cover compression treatment items.

Proposed 2024 Home Health Rule: Cuts Continue at 2.2%; More to Come?

Jul 14, 2023 / Review

After narrowly escaping reductions in 2023, home health could see a $375 million drop in 2024 as CMS adjusts to PDGM realities.

Proposed 2022 Home Health Rule Puts PDGM Changes on Hold

Jun 30, 2021 / Review

CMS uncovered some surprising data but can't tell the extent of the pandemic's influence on the numbers.

Misuse of SNF and HHA Payment Systems

May 15, 2020 / News

APTA is taking concerns about PDPM and PDGM misapplication directly to physician and consumer groups.

Postacute Care Survey Report Summary

May 1, 2020 / Summary

Review the survey that assesses the effects that the SNF PDPM and home health PDGM models may have had on care delivery in the SNF and home health settings

The New Postacute Care Payment Systems: 5 Tips to Help You Find Your Way

Dec 11, 2019 / Analysis

PDPM and PDGM are here, and PTs and PTAs must now learn how to navigate the changed landscapes.

Patient-Driven Groupings Model: An Opportunity for Physical Therapists (part 2)

Nov 21, 2019 / Perspective

It's important to understand two questions: Who assesses the functional impairments? Who collects the data for the functional score?

Patient-Driven Groupings Model: An Opportunity for Physical Therapists (part 1)

Nov 15, 2019 / Perspective

It's time to move forward. We can't change the past, but we can learn from it.

Final Home Health Rule Cements PDGM, Allows PTAs to Perform Maintenance Therapy

Nov 1, 2019 / News

What's in the final 2020 home health payment rule from CMS?