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Long-term and post-acute care (LTPAC) providers play a vital role in our health system. As one of the most complex patient populations, LTPAC patients are a considerable driver of Medicare costs.
According to the Medicare Payment Advisory Commission, Medicare spent nearly $57 billion on post-acute care—around 15% of total spending. Forty percent of inpatient hospital discharges are followed by LTPAC services, totaling nearly 2 million skilled nursing facility (SNF) stays per year.
Continuing to improve and coordinate post-acute care can lead to higher quality and lower costs. As such, LTPAC providers are in a position to lead the way on value-based care.
Unfortunately, many existing value-based care models, such as accountable care organizations, do not accommodate the unique challenges these providers face. These models are often tailored to a community-based, primary care provider. The Centers for Medicare & Medicaid Services (CMS) should take specific steps to help shape ACO models that better align with LTPAC providers. The patients they serve deserve the higher quality, lower cost care we know value-based care delivers.