From Acute Care to Home Care: The Evolution of Hospital Responsibility and Rationale for Increased Vertical Integration

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Abstract

EXECUTIVE SUMMARY

The responsibility of hospitals is changing. Those activities that were once confined within the walls of the medical facility have largely shifted outside them, yet the requirements for hospitals have only grown in scope. With the passage of the Patient Protection and Affordable Care Act (ACA) and the development of accountable care organizations, financial incentives are focused on care coordination, and a hospital's responsibility now includes postdischarge outcomes. As a result, hospitals need to adjust their business model to accommodate their increased need to impact postacute care settings.

EXECUTIVE SUMMARY

A home care service line can fulfill this role for hospitals, serving as an effective conduit to the postdischarge realm—serving as both a potential profit center and a risk mitigation offering. An alliance between home care agencies and hospitals can help improve clinical outcomes, provide the necessary care for communities, and establish a potentially profitable product line.

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