New Research Finds Long-Term Acute Care Hospitals Can Serve as Meaningful Contributors to Value-Based Care Models

WASHINGTON, Feb. 22, 2022 /PRNewswire/ -- ATI Advisory (ATI), a research and advisory services firm working to transform the delivery of healthcare and aging services for older adults, in partnership with Cedar Gate Technologies (Cedar Gate), a technology and services company enabling the transition and implementation of value-based care, released new research today highlighting the meaningful role that long-term acute care (LTAC) hospitals can play in value-based care through a case study of Kindred LTAC hospitals in the Las Vegas market.

At Kindred's request, ATI and Cedar Gate each independently assessed the experience of Kindred LTAC hospitals in Las Vegas via Medicare Fee-for-Service (FFS) claims, analyzing both the entire Medicare FFS population as well as beneficiaries within an accountable care organization (ACO) located in Las Vegas. The preliminary findings from this case study suggest that value-based models that utilize LTAC hospitals can experience improved beneficiary outcomes and savings in the post-discharge period, largely due to reduced readmission spending.

The analysis found that risk-adjusted Medicare spending in the 180 days after discharge from the initial post-acute care setting was 30-40 percent lower for ACO patients served by Kindred LTAC hospitals than those served by skilled nursing facilities in Las Vegas within the top volume conditions of sepsis and congestive heart failure. Furthermore, Medicare FFS beneficiaries who received care at Kindred LTAC hospitals had nearly 50 percent lower readmission spending after discharge from the initial LTAC hospital stay compared to other LTAC hospitals in Las Vegas. This finding is particularly notable as it includes all FFS beneficiary discharges, not limited to certain conditions or individuals who were receiving care coordination services through an ACO.

Prior ATI research indicated that LTAC hospitals have provided strong clinical capabilities and an essential safety net for healthcare delivery systems during the COVID-19 Public Health Emergency. "We are pleased to use our research to shine a spotlight on an example of where pairing certain complex individuals with specialized clinical capabilities can result in advantageous outcomes for both the patient and the healthcare system," said ATI Principal, Tyler Cromer.

ATI and Cedar Gate's analyses of the Las Vegas market indicate that additional savings could be accrued via value-based models, such as ACOs and managed care payer networks, that utilize LTAC hospitals for the management of high-acuity patients. "We recognize that subsequent analyses will be required to evaluate whether these findings can be generalized to other markets or within managed care populations," said Tina Hansen Pickett, Director at ATI.

See the full analysis here.

About ATI Advisory
ATI Advisory is a research and advisory services firm working to transform the delivery of healthcare and aging services for older adults. By providing insight and strategy backed by original research, ATI helps organizations lead and deliver change in long-term services and supports systems and healthcare for complex care populations. ATI's approach breaks down public and private sector barriers that prevent innovative solutions to siloed, broken systems across acute, post-acute, and long-term care services and supports. For more information, visit: www.atiadvisory.com.

SOURCE ATI Advisory

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