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Hospital-linked care continuums can create provider feedback loop. (Hospital-Linked Care Continuums).

Publication: Health Care Strategic Management
Publication Date: 01-APR-03 		Format: Online - approximately 1040 words
Delivery: Immediate Online Access

Article Excerpt
Medicare payment rates for long-term care remain depressed, some of the largest independent skilled nursing facility operators are bankrupt or just emerging from Chapter 11, and the credit ratings outlook for the industry is generally negative (see related story on page 12).

Amid that environment it may sound odd to talk about the value of engaging in hospital-linked care continuums, particularly in cases where the hospital would have an ownership stake in those facilities. But the case can be made that hospital integration with a downstream care continuum--such as skilled nursing and assisted living facilities, congregate care, and home health care delivered in a health care setting--creates a feedback loop for patient satisfaction and back-and-forth referral, also known as a "virtuous positive feedback loop."

That's the assessment of Bill Pomeranz, a managing director with New York-based health care-focused investment banking firm Cain Brothers. Pomeranz is a principal author of two reports published by Cain Brothers...

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