The Centers for Medicare & Medicaid Services will solicit home health agencies in seven states to participate in a two-year pay-for-performance demonstration to begin in January, the agency announced today. The states are Alabama, California, Connecticut, Georgia, Illinois, Massachusetts and Tennessee. Participating home health agencies could receive payments for improvements in patient outcomes based on seven quality measures from the existing Outcome-Based Quality Improvement set, dependent on overall savings to the Medicare program. This demonstration is expected to precede a nationwide adoption of pay-for-performance for all home health providers in the Medicare program.