Consolidation in the Post-Acute Care market place has been occurring for years now. Health Systems have struggled to find the best strategy and approach to create a post-acute care continuum. So let’s be honest, is it working for you? Most health systems have tried to assemble the talent required to be successful with mixed results. Most systems are strong with home care leadership but lack in other areas such as hospice. Understanding the market is also a key factor that can make or break a strategy.

The potential impact of these trends will vary by market, and post-acute providers are struggling to understand how their market will be affected before setting a strategic direction. The questions they are grappling with:

• What is the market size of pre and post-acute referral sources?
• How much business comes from community-based programs versus hospitalizations?
• Who are the primary competitors trying to gain a seat at the “network” table and what is their market share?
• What are the levels of patient satisfaction or dissatisfaction and quality, as evidenced by patient transfers and re-admission levels?

Further, readmission penalties imposed under the Affordable Care Act mean that hospital administration is more invested than ever in caring about what happens to the patient, post-discharge. The challenges of understanding market demands and the resources to meet these needs is a “front and center” organizational effort. In some markets, economically incentivized programs, such as Accountable Care Organizations (ACO’s) and bundled payment initiatives will add to this pressure. I believe ACO will play themselves out and bundled payment more of the driver. The level of complexity in identifying, implementing and maintaining this network means that there will be little tolerance for innumerable post-acute “partners.” By necessity, hospital administration will have to consolidate its post-acute referrals into a manageable few “best of the best” providers, thereby creating a network.

Many health systems go through a “make” or “buy” process regarding their management of the patients outside the hospital. Here is a strategy I would like to make you aware of that could be a solution. Evolution Health is a health care company that specializes in the management and development of post-acute care continuums www.evhealth.net/. What I like about this company is that they create partnerships with health systems and assume risk as they work with the health care system.

Evolution Health is a care coordination and transitional care management solution to help reduce gaps in care, enhance patient experience and improve overall financial performance. They recently partnered with a large Catholic Health System to operate and manage their post-acute care continuum.

Today’s challenges require health care executives to explore all option as they address their patients once they leave the hospital campus.

– The Best