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Vertical integration between hospitals and skilled nursing facilities (SNFs) increases Medicare payments for the ﬁrst 60 days of care by $2,424 (17%), compared to hospital-SNF pairs that are not vertically integrated. These integrated hospital–SNF pairs also experience a decline in 30-day rates of rehospitalization or death of 5 percentage points on a base rate of 31.3%. Vertical integration between hospitals and home health agencies (HHAs) has little effect on Medicare payments and patient outcomes, nor does informal integration in either setting.
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vertical integration, post-acute care, Medicare, payment, rehospitalization
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Citation For This Study
Konetzka RT, Stuart EA, Werner RM. The effect of integration of hospitals and postacute care providers on Medicare payment and patient outcomes. J. Health Econ. (2018), https://doi.org/10.1016/j.jhealeco.2018.01.005
Date Posted: 20 March 2018