Literature DB >> 30281783

Effect of Site-Neutral Payment Policy on Long-Term Acute Care Hospital Use.

Anil N Makam1,2, Oanh Kieu Nguyen1,2, Benjamin Kirby3, Michael E Miller2, Lei Xuan2, Ethan A Halm1,2.   

Abstract

OBJECTIVE: To assess the projected effect of the Centers for Medicare and Medicaid Services new site-neutral payment policy, which aims to decrease unnecessary long-term acute care hospital (LTACH) admissions by reducing reimbursements for less-ill individuals by 2020.
DESIGN: Observational.
SETTING: National 5% Medicare data (2011-12). MEASUREMENTS: We examined the proportion of site-neutral LTACH admissions. Regional LTACH market supply was defined as LTACH beds per 100,000 residents, categorized according to tertile. We conducted a hospital-level analysis to compare the projected effect of site-neutral payment on "propensity score" matched high- and low-LTACH-use hospitals.
RESULTS: Forty-one percent of LTACH admissions would be subjected to site-neutral payment. The proportion of site-neutral admissions was large, varied considerably according to LTACH (median 40%, interquartile range 22-60%), and was only modestly greater with greater market supply (Pearson correlation coefficient=0.23, p<.001; coefficient of determination=0.10). The site-neutral payment policy would affect 47% of admissions from the highest-supply regions, versus 30% from the lowest-supply regions (p<.001); and 43% from high-use hospitals versus 36% from propensity score-matched low-use hospitals (p<.001).
CONCLUSION: A considerable proportion of LTACH admissions will be subjected to lower site-neutral payments. Although the policy will disproportionately affect high-use regions and hospitals, it will also affect nearly one-third of the current LTACH population from low-use hospitals and regions. As such, the site-neutral payment policy may limit LTACH access in existing LTAC-scarce markets, with potential adverse implications for recovery of hospitalized older adults. J Am Geriatr Soc 66:2104-2111, 2018.
© 2018, Copyright the Authors Journal compilation © 2018, The American Geriatrics Society.

Entities:  

Keywords:  Medicare; health policy; long-term acute care hospital; older adults; postacute care

Mesh:

Year:  2018        PMID: 30281783      PMCID: PMC6382068          DOI: 10.1111/jgs.15539

Source DB:  PubMed          Journal:  J Am Geriatr Soc        ISSN: 0002-8614            Impact factor:   5.562


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