Skip to main content

Physical therapy services comprise a significant amount of Medicare expenditures in postacute care settings—inpatient rehabilitation facilities, long-term care hospitals, skilled nursing facilities (SNFs), and home health agencies (HHAs) under Medicare Part A. Physical therapists (PTs) practicing in postacute care are integral to improving the quality of care provided to patients while reducing overall costs. This is particularly true under new value-based payment initiatives such as bundled payment models, accountable care organizations, and patient-centered medical homes.

Payment Squeeze

The Medicare payment system is shifting away from the fee-for-service payment structure, in which providers are rewarded solely for the volume of services provided, and toward a structure that holds providers accountable for patient outcomes and costs. This move to value-based care is intended to advance the goals of health care's "triple aim"—improving the patient experience of care (including quality and satisfaction), bettering the health of populations, and reducing the per-capita cost of health care.

Log in or create a free account to keep reading.


Join APTA to get unlimited access to content.

  1. Medicare Postacute Care Reform. American Physical Therapy Association. http://www.apta.org/Payment/Medicare/PACReform/. Accessed October 17, 2017.
  2. A history of home health cuts. Partnership for Quality Home Healthcare. http://homecarenh.org/wp-content/uploads/2017/09/HistoryOfHHCuts_OnePager_FINAL-FINAL.pdf. Accessed October 18, 2017.

You Might Also Like...

Article

Proposed FY ’26 SNF and IRF Rules: Payment Increases, Roll Back of SDOH Items

Apr 23, 2025

Skilled nursing facilities could see a 2.8% payment increase and inpatient rehabilitation facilities could see a 2.6% boost beginning in October 2025 if

News

A Tribute to Worthingham Fellow Christine McDonough, PT, PhD, FAPTA

Apr 22, 2025

It is with profound sadness that we share the passing of our colleague and friend, Christine McDonough, PT, PhD, FAPTA, on Dec. 18, 2024. Christine was

News

APTA Releases 2024 Annual Report

Apr 15, 2025

Now available: the 2024 APTA Annual Report, a snapshot of some of the association's biggest accomplishments in 2024, from two major wins in Medicare payment