Pursuant to a legislative requirement, GAO reviewed the Health Care Financing Administration's (HCFA) new rule on a prospective system (PPS) for home health agencies. GAO noted that: (1) the final rule establishes requirements for the PPS for home health care agencies as required by the Balanced Budget Act of 1997; (2) these requirements include the implementation of a PPS for home health agencies, consolidated billing requirements, and a number of other related changes; and (3) HCFA complied with applicable requirements in promulgating the rule.