Alvarez & Marsal Analyzes Post-Acute Care Sector's Future
A new analysis by Alvarez & Marsal outlines significant challenges and opportunities for the post-acute care sector over the next decade, urging providers to adapt to evolving healthcare payment models and market consolidation.
Management consulting firm Alvarez & Marsal (A&M) has released an analysis detailing the evolving landscape of the post-acute care sector.
The report, "Alvarez & Marsal Analyzes Challenges and Opportunities Ahead for Post-Acute Care Sector," suggests that providers must adapt to survive a decade of disruption. Despite demographic trends favoring increased demand from an aging U.S. population, facilities face significant pressures from legislative and payment reforms.
Key factors impacting the sector include the IMPACT Act of 2014, the Comprehensive Care Joint Replacement (CJR) model, and other payment reform initiatives. Increased penetration of Medicare Advantage plans, alongside growing consolidation among health systems, hospitals, and physician practices, further intensifies competition and necessitates strategic adjustments.
"With healthcare moving away from facility-centric reimbursement, the post-acute care sector is facing an inflection point that will produce clear 'winners' and 'losers,'" said David Gruber, Director of Research with A&M's Healthcare Industry Group. "Our analysis is intended to help operators take the steps they need to stay competitive and continue serving patients."
The A&M analysis identifies critical success factors such as scale, efficiency, quality, data analytics, and integrated care offerings. It finds the most promising long-term investment opportunities lie in home care, while long-term acute care hospitals face the greatest challenges. Opportunities are also noted for inpatient rehabilitation facilities, hospice, and skilled nursing facilities.