Skip to main content

Physical therapy services comprise a significant amount of Medicare expenditures in postacute care settings—inpatient rehabilitation facilities, long-term care hospitals, skilled nursing facilities (SNFs), and home health agencies (HHAs) under Medicare Part A. Physical therapists (PTs) practicing in postacute care are integral to improving the quality of care provided to patients while reducing overall costs. This is particularly true under new value-based payment initiatives such as bundled payment models, accountable care organizations, and patient-centered medical homes.

Payment Squeeze

The Medicare payment system is shifting away from the fee-for-service payment structure, in which providers are rewarded solely for the volume of services provided, and toward a structure that holds providers accountable for patient outcomes and costs. This move to value-based care is intended to advance the goals of health care's "triple aim"—improving the patient experience of care (including quality and satisfaction), bettering the health of populations, and reducing the per-capita cost of health care.

Log in or create a free account to keep reading.


Join APTA to get unlimited access to content.

  1. Medicare Postacute Care Reform. American Physical Therapy Association. http://www.apta.org/Payment/Medicare/PACReform/. Accessed October 17, 2017.
  2. A history of home health cuts. Partnership for Quality Home Healthcare. http://homecarenh.org/wp-content/uploads/2017/09/HistoryOfHHCuts_OnePager_FINAL-FINAL.pdf. Accessed October 18, 2017.

You Might Also Like...

Article

Medicare Participation: You Have Options

Jun 25, 2025

First time enrolling in Medicare? Looking to change your participation status? This resource serves as your guide to the two types of Medicare participation

Article

APTA Champions Return of Bill to Expand Access to Pelvic Health Physical Therapy

Jun 24, 2025

APTA and APTA Pelvic Health are advocating to improve access to vital postpartum care, including pelvic floor physical therapy. This persistence is paying

Article

APTA Advocacy Leads to Direct Access for Millions Covered by Aetna

Jun 17, 2025

The Big Picture of Aetna’s Policy Change In response to ongoing advocacy efforts by APTA, Aetna has updated its physical therapy policy to provide unrestricted