A hospital within a hospital: An innovative pharmacy model to improve the continuum of care

Abstract Purpose To describe the implementation of a contracted pharmacy service model for a co-located long-term acute care hospital (LTAC). Summary Historically, most LTACs have been free-standing healthcare facilities, but there is an increased trend towards the co-located LTAC (“hospital within a hospital”) model. Co-located LTACs represent a solution for the management of patient throughput within a health system, with optimized bed capacity at the host hospital, increased revenue under a prospective payment system, and reduced readmission rates. A co-located LTAC will likely share resources with the host hospital, including ancillary departments such as pharmacy services, through a contractual model. Operationalization of pharmacy services in a co-located LTAC presents unique challenges in the integration of pharmacy services. Pharmacy leaders at Houston Methodist collaborated with executive leadership and other healthcare disciplines to expand services from a free-standing LTAC to a co-located LTAC at the academic medical center location. The contracted pharmacy service operationalization processes in the co-located LTAC comprised licensure and regulations, accreditation, information technology enhancements, a staffing model, operations/distribution services, clinical services, and a defined quality reporting structure. Admissions from the host hospital to the LTAC consisted of patients requiring long-term antibiotic administrations, pre– and post–organ transplant care, complex wound care, oncologic-related treatment, and neurological rehabilitation for strengthening and continued care. Conclusion The framework described here offers guidance to health-system pharmacy departments to support establishment of a co-located LTAC. The case study outlines challenges, considerations, and processes for implementation of a successful contracted pharmacy service model.