Revenue Cycle & Billing

    Medicare Fee-for-Service

    Medicare fee-for-service (FFS), also called Original Medicare or traditional Medicare, is the arrangement in which the federal government pays providers directly for covered services under Parts A and B. For home health agencies, FFS patients are paid under the Home Health Prospective Payment System using PDGM, with claims processed by Medicare Administrative Contractors. FFS is the reference payer against which agencies compare every other contract.

    Definition

    Medicare fee-for-service (FFS), also called Original Medicare or traditional Medicare, is the arrangement in which the federal government pays providers directly for covered services under Parts A and B. For home health agencies, FFS patients are paid under the Home Health Prospective Payment System using PDGM, with claims processed by Medicare Administrative Contractors. FFS is the reference payer against which agencies compare every other contract.

    Why it matters

    Medicare Fee-for-Service is part of the Revenue Cycle & Billing vocabulary used across home health operations, documentation, and revenue cycle. Understanding it helps clinicians, QA leads, and administrators stay aligned on care quality and compliance.

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