New York, NY – The post-acute care sector must evolve to survive an onslaught of disruption coming in the next ten years, according to a new analysis by Alvarez & Marsal Healthcare Industry Group.
The report argues that despite the aging U.S. population, post-acute care facilities face an increasingly challenging, competitive landscape as a result of the IMPACT Act of 2014, the Comprehensive Care Joint Replacement (CJR) model and other payment reform initiatives; increasing Medicare Advantage plan penetration; and the growing consolidation of health systems, hospitals and physician practices. It outlines critical factors for success, identifies risks and analyzes prospects for specific post-acute care sites, including skilled nursing facilities, home care, long-term acute care hospitals, hospice, inpatient rehabilitation facilities and senior housing.
“With healthcare moving away from facility-centric reimbursement, the post-acute care sector is facing an inflection point that will produce clear ‘winners’ and ‘losers,’” said David Gruber, MD, MBA, Director of Research with Alvarez & Marsal Healthcare Industry Group. “Our analysis is intended to help operators take the steps they need to stay competitive and continue serving patients, a necessity as the U.S. population ages and requires healthcare institutions that can meet a complex array of medical, behavioral, functional and social needs.”
The critical success factors identified in the report include scale; efficiency; quality; data-driven analytics and risk management; business intelligence; integrated continuum of post-acute care offerings; patient and caregiver engagement (self-management); and management acumen. The analysis demonstrates that longer term investment opportunities are best for home care and worst for long-term acute care hospitals, with selective opportunities on the horizon for inpatient rehabilitation facilities, hospice and skilled nursing facilities.
About Alvarez & Marsal
Companies, investors and government entities around the world turn to Alvarez & Marsal (A&M) when conventional approaches are not enough to activate change and achieve results.
Privately held since 1983, A&M is a leading global professional services firm that delivers business performance improvement, turnaround management and advisory services to organizations seeking to transform operations, catapult growth and accelerate results through decisive action. Our senior professionals are experienced operators, world-class consultants and industry veterans who leverage the firm's restructuring heritage to help leaders turn change into a strategic business asset, manage risk and unlock value at every stage.
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