Per capita service use ranges from $60 to $450 for PAC, compared to $225 to $425 for ambulatory care and $250 to $400 for acute inpatient care. These differences mean that PAC providers have many opportunities to drive greater efficiencies, a fact not lost on the Medicare program.
Avalere best practices analysis identifies three opportunities to reduce PAC spending:
- Hospitals should discharge patients to the lowest cost setting that has demonstrated high quality services and effective outcomes. Spending across an episode of care for the same MS-DRG varies significantly based on the first site of discharge.
- Institutional setting length of stays should be as short as possible. Significant savings opportunities arise when patients discharged to institutional settings have been transitioned home quickly and safely.
- Providers managing risk should reduce unnecessary readmissions. The average national 30-day re-hospitalization rate from SNFs in 2011 was 20 percent (Avalere Vantage Care Positioning System™ report)