LUPA & PDGM
Margin Reduction
Decrease in an agency's operating profit due to lower reimbursement, increased costs.
Definition
Margin Reduction is the decrease in an agency's operating profit due to lower reimbursement, increased costs, or operational inefficiencies.
Why it matters
Repeated LUPAs can reduce profit margins because staffing, travel, and administrative costs often remain unchanged while reimbursement decreases.
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Conversations on lupa & pdgm
Episodes from Inside Home Health that put Margin Reduction in operational context.
