More than 40% of Medicare beneficiaries are discharged from acute care hospitals to postacute care each year. Reports by the National Academy of Sciences
1 and the Institute of Medicine
2 have found that postacute care was the largest contributor to geographic variation in Medicare costs. The 2014 Improving Medicare Post-Acute Care Transformation (IMPACT) Act
3 requires the Secretary of the Department of Health and Human Services to establish a unified payment system for postacute care. As a step in this process, the Medicare Payment Advisory Commission recommended that inpatient rehabilitation facilities (IRFs) and skilled nursing facilities (SNFs) explore similar episode-based reimbursement for a given condition. The proposal is based, in part, on the substantial overlap in patient populations served by IRFs and SNFs.
4,5