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the
Acute Care
Continuum




Is the integration of urgent, emergent, inpatient and
post-discharge
care of patients with
acute medical conditions.

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A Bump in the Road to Payment Reform

In 2013 and 2014 as part of the Patient Protection and Affordable Care Act (ACA) a “primary care payment bump” will become effective. This is a program where for two years primary care physicians (PCPs) will receive the Medicare level reimbursement for the Medicaid patients they see. This is not a small change, considering Medicaid rates have been estimated to be about 66 cents to the dollar when compared to Medicare primary care rates. In fact, the investment the Feds are making for this program is estimated to be $11 billion and will increase PCP Medicaid reimbursement by 34%.

Physicians eligible for this program are those with a specialty in family medicine, internal medicine, pediatric medicine, and obstetrics. The policy considerations behind this pay bump are consistent with the ACAs goal of expanding the availability of health care. Medicaid expansion is a critical component of how increased care will be provided across the country under the ACA.

Integrating a New Player in the Acute Care Continuum

The move toward care integration is intensifying, and some of the solutions I see emerging right now might have looked like science fiction a few years back. I don’t think anyone envisioned so many departments coming together under one umbrella in a hospital setting and working with agile outside entities such as a Federally Qualified Healthcare Center (FQHC). But scenarios like this are being fueled by both the government and hospitals.

The Federal government sees cost savings associated with integration and uses incentives such as bundled payments to bring departments together. With the budget crisis and patient boom, hospitals are harnessing this power of collaboration and working to build the seamless transfer of care between departments.

Imagine this: an integrated team that includes the ED, hospitalists, intensivists, primary care physicians (PCPs) as Chronic Disease Management specialists, and even post-acute care done though a FQHC. FQHCs are publicly-funded health clinics that provide primary care services for underserved patients. They also provide, or have an agreement with another organization to provide, dental services, mental health services, as well as hospital and specialty care. FQHCs are quickly entering the healthcare landscape as they gain financial resources. The Affordable Care Act in 2010 included $11 billion for FQHCs over a period of 5 years. Considering this influx of money, you can understand why FQHCs are gaining prominence and emerging in the hospital setting.

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