The US healthcare system is fast approaching a time when having a postacute care strategy will not be simply a matter of choice for the nation's hospitals and health systems. Demand for postacute services will increase as baby boomers in increasing numbers enter their retirement years. The idea of developing a postacute care strategy is not new for hospitals. Postacute programs experienced significant growth in the early 1990s as hospitals, seeking to develop integrated delivery systems, implemented strategies to transition patients through the continuum of care and manage diagnosis-related group lengths of stay. Many hospitals are not giving adequate strategic attention to the healthcare needs of this population following their acute treatment. Government officials have advised health programs to brace themselves for increased demands on the healthcare system. Hospitals and health systems need to start focusing on promoting health in older adults, preventing disabilities, and maintaining quality of life.