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With demographic changes projected to drive up expenditures and the predicted insolvency of the Medicare trust fund, policymakers are looking to the private sector for ideas.
Medicare is the primary payer for most hospital-based post-acute providers. The number of Medicare patients receiving post-acute care has increased and those receiving post-acute services are receiving more intensive care.
An RN shortage appears to be emerging in certain specialty and geographic areas. This shortage may become more serious and widespread over time, due to changes in social, demographic and economic factors.
Since 1988 hospital performance has improved. In 1997, average total margin was 6.7% compared to less than 5% in the early 80’s.