95% of hospitals & health systems will develop high-value PAC networks by 2020

With the federal government putting pressure on post-acute care (PAC) providers to reduce utilization, growth in PAC preferred provider networks is "surging" across the country, according to both a Manatt analysis and a Premier study.

National PAC trends: "Though unlikely in the immediate term, the future of PAC payment will continue to shift toward risk-adjusted, site-neutral payments and tests of value-based payment models, including acute-post-acute care bundles," says Stephanie Anthony, Director, Manatt Health.

This trend is spurring the formation of new PAC “preferred provider networks” in which systems "buy or build PAC services as part of their owned network of services" or "integrate with PAC by creating networks of preferred providers that collaborate to optimize patient care across settings."

According to the Premier study, establishing high-value post-acute care networks was cited as a key area of focus over the next three years by 95% of executives from 82 hospitals and health systems.

Benefits of PAC Preferred Provider Networks

  • Hospitals gain access to more PAC services, which can improve efficiency and throughput and potentially reduce readmissions and avoidable ED visits.
  • PAC providers gain more predictable referral streams, stronger clinical support, and participation in new reimbursement models.
  • Shared benefits include better data sharing, collaborative care protocols and clinical pathways, and improve communication among care teams.
Source: https://www.manatt.com/Insights/Newsletters/Health-Update/Mapping-the-Healthcare-M-A-Landscape-Under-the-New

Topics: Post-Acute Care, Payment Models