Reduce readmissions with telemedicine for LTC- How much does an unneeded re-hospitalization really cost?
Did you know hospitals are penalized $10,000 for a single readmission?
Protect Your Census
Although reimbursement rates vary by location, let’s break down the cost of a typical hospital readmission. If Medicare pays approximately $500 per short stay patient, and a typical readmission removes the resident for an average of 8 days, that’s $4000 in lost revenue that will be generated elsewhere. But that’s not the only cost..
Transportation and Added Labor
LTC operators know that transportation is not always reimbursable. A typical transport to a hospital/ER will likely result in an out of pocket cost of $950-$1250 (non-emergency/emergency). Add the labor costs associated with the transfer and you easily surpass $1000 per readmission.
Effective 2018, institutions may incur up to a 3% penalty for surpassing the readmission percentage thresholds. That means up to 3% of your Medicare payments will be withheld if you do not fall within the readmission rate guidelines.
While there might not be a monetary penalty from your ACO/MCO, readmissions are not going unnoticed. ACO/MCO’s continue to place stricter guidelines on their associated LTC facilities meaning an increase in readmissions will result in a decrease to your patient referrals.
The Bottom Line
Readmissions are expensive, a lot more expensive than iDocsWeb. In fact, if you prevent a single unneeded hospitalization per month, your ROI surpasses the cost of iDocsWeb- Even including After-Hours MD Coverage!