What’s happening with Post-Acute Care?

Today, more than half of Americans will need some form of long-term nursing care within their lifetime, and 1 in 7 will need to rely on nursing assistance for more than 5 years. 67% of nursing home expenses are covered by American Medicare and Medicaid; yet, improper government reimbursements are contributing to the rising closures of post-acute facilities. However, overspending and excessive wasting also contribute to the current vulnerability of long-term care’s ecosystem. Amidst these closures, the American nursing home market is still projected to earn more than $737 billion by 2026. How so?

In short, rising costs. You have to spend money to make money. As facilities experience staff shortages, higher wages are being offered to attract highly-talented caregivers. Additionally, more specialized care is often required for elderly patients. After all, 52 million Americans were 65+ in 2018, and that number will double by 2060. With specialized care to treat common diagnoses of Alzheimer’s and dementia, higher costs are presented. Still, something is missing.

Long-term care facilities are facing many challenges. Check out the accompanying infographic to find more information on post-acute assistance.