The cost effectiveness of post-acute care for elderly Medicare beneficiaries

This study used a novel method to examine the cost effectiveness of post-ac ute care (PAC) in different settings. The analysis found that home health c are was more cost effective than PAC in skilled nursing facilities (SNFs) o r rehabilitation facilities. The cost effectiveness for home health care wa s also more favorable relative to being home without formal care. Post-acut e care in SNFs was not cost effective compared to being home without formal care. The cost-effectiveness analysis showed mixed support for PAC in reha bilitation facilities. These results, and the use of cost-effectiveness ana lysis irt general, provide a basis for a more efficient Medicare reimbursem ent system for PAC.