Using Skilled Nursing Facility Placement to Generate PAC Savings

Manatt Health Issue Brief

The aging population is putting intense financial and operational pressure on the healthcare system, especially for post-acute care (PAC). As health systems and providers get more involved in value-based payment (VBP) models in which they are responsible for the PAC costs of their patients, they are eager to identify providers who can partner with them in providing higher value care.

To help health systems and providers identify ways to decrease the total amount spent during an episode of PAC, while ensuring quality is not adversely impacted, Manatt designed a model that demonstrates how savings can be achieved by taking a strategic, data-driven approach to skilled nursing facility (SNF) placement.

In a new issue brief, Manatt shares key results of its analysis, finding that health systems can use Medicare claims data to identify top SNF performers and use that information to build better referral networks to reduce PAC spend. For health systems in markets that are highly competitive and have high variance in SNF costs, improved referral processes can generate savings under VBP models. In the future, hospitals and other referring entities engaged in VBP models can use these tools to reduce the costs for which they are held accountable, using models like the one developed by Manatt.

Read the full issue brief here.

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