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HIDA 2018 Post-Acute Market Report

HIDA 2018 Post-Acute Market Report

Market At-A-Glance
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.


Executive Summary
Table of Contents
2017 Post-Acute Market Overview
Hospitals Discharge Patients To Lower-Cost Settings
Episode Costs Vary By Follow-On Setting
SNF Revenues Estimated To Reach $130 Billion In 2018
Downward Trend In Occupancy Likely To Reverse
Nursing Facility Resident Characteristics
Increased Acuity Drives SNF Demand For Medical Supplies
Skilled Nursing Medicare Expenses By Category
Skilled Nursing Medicare Expenses By Category Con’t.
SNF Operating, Net Margins Fall Below 1%
Managed Medicare Adds Pressure To SNF Profitability
Number Of For-Profit SNFs Increased In 2016
2018 Brings Reimbursement Changes, More On The Horizon
Acute Care Regulation Impacts Post-Acute Market
Quality Measures Remain Unchanged For SNFs
Star Ratings Impact SNF Referrals
Infection Control Most Common Deficiency
IRFs Vulnerable To Changes In Reimbursement
LTAC Revenues Reach $12 Billion In 2017
CCRCs A $42 Billion Market In 2017
Rapid Growth Projected In Need For Memory Care
LTC Deals One-Quarter Of 2017 Total Healthcare M&A
GHX Reports $2.1 Billion In Post-Acute Sales Through Distribution Channel In 2017
GHX Lists Top Post-Acute Care Products Sold Through Distribution
GHX Reports Post-Acute Care Sales By Segment
Definitions

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