Variations In Medicare Spending Dependent On Post–Acute Care & Inpatient Service Utilization

Most variations in Medicare spending among geographic areas is due to differences in utilization of post-acute care and inpatient services, according to an analysis of Medicare spending by the Institute of Medicine (IOM). In Medicare hospital referral regions (HRRs) with low spending for all services, per beneficiary costs are from $100 to $150 per month lower than the average HRR spending. In HRRs with higher spending, the per beneficiary monthly costs are $100 to $150 above the average. In the HRRs with low-spending for all services, spending on post-acute care services is about $50 less per month . . .