What type of groups are home health resource groups (HHRGs) based on?

Home Health Resource Groups (HHRGs) are specifically designed to categorize home health patients based on clinical, functional, and service utilization severity. This classification system helps determine the appropriate reimbursement rates for services provided to patients by home health agencies under the Medicare program.

The focus on clinical aspects involves the diagnosis or medical needs of the patient, which guides the type and level of care required. Functional factors take into account the patient’s ability to perform daily activities, providing insights into the level of assistance needed. Service utilization severity reflects the intensity of the services used by the patient, which further informs payment levels.

This method of grouping is crucial because it directly links the severity and types of health care services a patient requires to the reimbursement process, ensuring that home health agencies are compensated fairly based on the complexity of patient care. This accurately aligns with the primary intention of the HHRG system, which is to support the effective allocation of resources based on patient needs and characteristics.