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The private sector within the U.S. healthcare system typically demonstrates a faster adoption of valuable innovations in contrast to the public sector. It often awaits initial steps from the public sector before scaling up innovations. The "hospital at home" model, providing acute hospital care within patients' homes, could have achieved broader implementation earlier with aligned incentives. Hospital-at-home programs have been under study since the 1970s, but widespread investment and adoption only accelerated during the Covid-19 public health emergency. The Centers for Medicare and Medicaid Services temporarily allowed Medicare reimbursement for hospital-at-home services through the Acute Hospital Care at Home Waiver, sparking momentum driven by aging baby boomers' increasing demand and the desire to avoid new hospital construction.Research indicates that hospital-at-home programs reduce mortality, costs, and enhance patient satisfaction, but they necessitate substantial upfront investments in processes, technology, and personnel.
In the U.S. healthcare system, the private sector often leads in adopting innovations, waiting for cues from the public sector. The "hospital at home" model, providing acute care at patients' homes, could have scaled faster with aligned incentives. Though studied since the 1970s, COVID-19 accelerated adoption. Medicare's temporary reimbursement for these services under the Acute Hospital Care at Home Waiver drove momentum. Hospital-at-home programs, while beneficial, require significant upfront investments in processes and personnel. Reimbursement poses a challenge, as individual payers may lack the scale to justify costs, emphasizing the need for universal payer alignment.
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