Why Post Acute Care

Post acute care is a critical part of healthcare reform in the US as more people are moved through the various parts of our healthcare system with suboptimal care and high cost overruns.

Each year nearly nine million people (24,000 per day) are discharged from short-term acute care hospitals and require some form of post acute care.  Patients typically see a range of providers and specialists promoting communication problems and other errors resulting in higher costs. These problems result in a substantial number of hospital readmissions. 

According to Medpac, 20% of Medicare patients are rehospitalized within 90 days. More than 75% of these readmissions are thought to be avoidable, saving $26 billion per year.

In an attempt to address this large expense, in October 2012, Medicare started penalizing hospitals with high readmission rates.  In 2014, penalties were up to 3%. 

The industry is motivated to address the lack of coordination in post acute care. 

Medicare spending on post acute care is estimated to be $63.5 billion.