New York, N.Y. (May 19, 2016)—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 health care 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 health care 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.

Click here to access the report.

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