CMS Issues Post-Acute Care Payment Reform Demonstration Report

New data collection tools and methods of payment could be in store for post-acute care providers, according to CMS' Post-Acute Care Payment Reform Demonstration (pdf) report.

The purpose of the demonstration and report, which was required by the Deficit Reduction Act of 2005, was to collect data and predict costs and outcomes in each of the four types of post-acute care providers covered under Medicare Part A: long-term care hospitals, inpatient rehabilitation facilities, skilled nursing facilities and home health agencies. Additionally, data was collected from acute-care hospitals at discharge to provide a framework for the continuum of care.


Overall, the demonstration focused on 140 total acute-care and post-acute care providers in 12 markets. The demonstration resulted in the creation of the Continuity Assessment Record and Evaluation tool, which measures patient-specific factors predictive of resource needs, patient outcomes and risk adjustment, and clinical factors associated with patient discharge placement decisions.

CMS found several key results, including evidence that supports the potential development of a common payment system for the three inpatient post-acute care settings: LTCHs, IRFs and SNF.

Related Articles on Post-Acute Care Payment:

Post-Discharge Services Create New Challenges for Medicare Bundled Payment Participants

MedPAC Discusses Payment Changes for Post-Acute Providers Starting FY 2013

10 Ways for Hospitals and Health Systems to Increase Profitability in 2012

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