The revolving door of rehospitalization from skilled nursing facilities

Abstract

Almost one-fourth of Medicare beneficiaries discharged from the hospital to a skilled nursing facility were readmitted to the hospital within thirty days; this cost Medicare $4.34 billion in 2006. Especially in an elderly population, cycling into and out of hospitals can be emotionally upsetting and can increase the likelihood of medical errors related to care coordination. Payment incentives in Medicare do not encourage providers to coordinate beneficiaries' care. Revising these incentives could achieve major savings for providers and improved quality of life for beneficiaries.

Exhibit 1

Schematic of Rehospitalization from Skilled Nursing Facilities

Exhibit 2

Trends in Rehospitalization Rates from Skilled Nursing Facilities: 2000-2006 Source: Authors’ calculations using Medicare inpatient and skilled nursing facility claims and eligibility data and the Minimum Data Set, Centers for Medicare and Medicaid Services.