Hospital networks that owned one or more vertically integrated skilled nursing facilities (SNFs) had higher rates of SNF utilization and lower readmission rates for Medicare beneficiaries following hip replacement. Beneficiaries were 15% more likely to be admitted to the hospital network SNF, and their hospital readmission rate was 6% lower. The overall episode cost of care was 1.3% lower compared to episode costs for care provided by hospital networks without a vertically integrated SNF.
In hospital networks with a vertically integrated SNF, about 21.7% of Medicare beneficiaries recovering from hip replacement were admitted to the SNF, compared to . . .

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