Dan Mendelson

Post-acute care providers need to rethink their care delivery models as healthcare shifts to a value-based system from a volume-based system, said one prominent industry expert.

“Post-acute care is on the cusp of some of the greatest changes it has seen in decades, and those operating across this growing sector of healthcare have exciting opportunities — and some interesting challenges to consider,” Dan Mendelson, CEO of Avalere Health, wrote as a Forbes contributor in December. 

The urgency for change stems from the expansion of value-based reimbursement, an increase in post-acute care utilization thanks to incentives for acute care providers, the growth of Medicare Advantage and managed Medicaid, and the popularity and high performance of provider-sponsored health plans. 

“Post-acute care providers have never played a more essential role, but to thrive in this shifting landscape, post-acute business models must change,” he said. 

Mendelson recently noted at an American Health Care Association event that Medicare spent $58.9 billion on post-acute care in 2017, which represented about 7% of total spending.

Mendelson called on providers to evaluate their risks, higher acuity abilities, experience with value-based care, and health plan offerings.