HIDA 2018 Post-Acute Market Report
The post-acute market is projected to reach $275 billion in 2018. By 2040, the number of seniors age 65+ is expected to grow to 82.3 million. More than half of these seniors are estimated to require post-acute care services, and one-quarter are expected to need two or more years of services.
Skilled Nursing Occupancy Predicted To Exceed Capacity
Occupancy trends are expected to improve for skilled nursing facilities (SNFs). While rates have consistently declined to a low of 82%, growth in the number of elderly Americans is expected to push occupancy to 91% by 2020. Occupancy is expected to outstrip capacity beginning in 2025, and is projected to reach 142% by 2035.
Star Ratings Impact SNF Referrals
As of 2017, 43% of hospital Medicare discharges were sent to post-acute settings, with half going to SNFs. Medicare and Medicaid-certified nursing homes receive star ratings (1-5) based on performance in health inspections, staff ratings, and quality measures. Under regulatory pressure, hospital providers are looking for ways to reduce readmissions and are referring their patients to higher performing SNFs to help them reach that goal.
Inpatient Rehabilitation Facilities Vulnerable To Changes
In Reimbursement Inpatient rehabilitation facilities (IRFs) had revenues of $11 billion in 2017, 70% of which come from Medicare and Medicaid. Because the IRF payer mix is dominated by government payers, these facilities face substantial financial risk from potential changes in government reimbursement.
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