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The Department of Health and Human Services made a key announcement regarding home care on Friday: It approved the expansion of the Home Health Value-Based Purchasing Model, which began its first performance year in 2016.

“The CMS Office of the Actuary has certified, based on its independent assessment of the model’s performance over the first three years of the Model, that an expansion would reduce, or not result in any increase in, net Medicare spending,” the Centers for Medicare & Medicaid Services said.

“The Secretary has also determined that an expansion of the HHVBP Model would likely improve quality of care for Medicare beneficiaries, without denying or limiting coverage or provision of benefits to Medicare beneficiaries,” CMS added.

The news is a welcome sign for home care providers, as the government determined that the program is valuable for Medicare. The Center for Medicare and Medicaid Innovation implemented the HHVBP Model among all home health agencies in nine states. Among the agencies in nine states where the model was available — Massachusetts, Maryland, North Carolina, Florida, Washington, Arizona, Iowa, Nebraska and Tennessee — the government tied payment to quality performance.

This article originally appeared on McKnight's Senior Living