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... Developments in Medicare Affecting Long-Term Care Hospitals Sibyl Tilson Specialist in Social Legislation... Domestic Social Policy Division Summary Medicare pays about $36 billion annually for post-acute care...), skilled nursing facilities (SNFs), and in the home. Medicare pays for care in each setting under a unique... PAI. Generally, Medicare requires that LTCHs be licensed as acute care hospitals and have an average... length of stay of 25 days. Although there is no prior hospitalization requirement in order for a Medicare