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Long-Term Acute Care (LTAC) Hospitals as Part of the Value-Based Solution: A Case Study of Kindred LTAC Hospitals in Las Vegas

This brief examines the role of long-term acute care (LTAC) hospitals in effectively managing the care of patients with complex conditions within a value-based model. As a case study, ATI Advisory (ATI) and Cedar Gate Technologies (Cedar Gate) each independently assessed the experience of Kindred LTAC hospitals in Las Vegas via Medicare Fee-for-Service (FFS) claims analysis. We found that Medicare beneficiaries served by Kindred LTAC hospitals in Las Vegas experienced significantly lower Medicare spending in the 90- and 180-days following discharge from the initial post-acute setting when compared to beneficiaries served in other LTAC hospitals and skilled nursing facilities (SNFs) in Las Vegas on a risk-adjusted basis. To note, this lower post-discharge spending was largely driven by lower readmission spending, indicative of less disruption and reduced time in the acute care setting for patients.

This analysis demonstrates potential improved outcomes and savings in the post-discharge period that could be accrued via value-based models that utilize LTAC hospitals for the management of high-acuity patients. As evident through the experience of Kindred LTAC hospitals in Las Vegas and their participation in the Silver State Accountable Care Organization (ACO), LTAC hospitals can meaningfully participate and contribute to success in value-based models, such as ACOs and managed care payer networks, by providing high-quality care for some of the most clinically complex cases.

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