While transferring stable chronically critically ill patients from the acute ICU setting to the rehabilitation-based environment of an LTCH can potentially have important therapeutic benefits, transferring such patients can certainly have financial benefits for the acute hospital. Reducing length of stay of chronically critically ill patients will reduce reimbursement deficits that occur when the costs of their acute ICU care exceed their diagnosis related group (DRG) and outlier payments. Additionally, the ICU beds that would otherwise be utilized for weeks or months could be recovered for use by patients in more urgent need of ICU care, thus improving patient flow from emergency departments, operating rooms, and acute hospital wards. An analysis by the Medicare Payment Advisory Commission4 confirmed that costs for total hospitalization (acute hospital and, when relevant, LTCH) are lower for PMV patients managed in regions with access to LTCHs compared to similar patients managed in regions without access to LTCHs. These cost savings are most likely achieved by lower intensity nursing in the LTCH setting compared to the acute hospital ICU, and possibly through more efficient movement through the rehabilitation process. Under the initial Tax Equity and Fiscal Responsibility Act of 1982-based system of reimbursement and the current DRG-based system, the LTAC industry has remained a rather profitable enterprise. That, combined with a large and willing referral base, has fueled explosive growth of the industry. The number of LTCHs has grown 12% per annum since 1992, with more recent growth advancing at an even higher rate.4