The cost effectiveness of post-acute care for elderly Medicare beneficiaries

Abstract

This study used a novel method to examine the cost effectiveness of post-acute care (PAC) in different settings. The analysis found that home health care was more cost effective than PAC in skilled nursing facilities (SNFs) or rehabilitation facilities. The cost effectiveness for home health care was also more favorable relative to being home without formal care. Post-acute care in SNFs was not cost effective compared to being home without formal care. The cost-effectiveness analysis showed mixed support for PAC in rehabilitation facilities. These results, and the use of cost-effectiveness analysis in general, provide a basis for a more efficient Medicare reimbursement system for PAC.