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Published in Volume 4, Issue 1, of Medicare and Medicaid Research Review, this paper provides an overview of results examining alternative Medicare post-acute care (PAC) episode definitions and exploring geographic differences in episode payments. The results of these analyses of PAC use vary based on 1) the denominator used to calculate an average payment level-all hospital discharges or solely PAC users 2) the mix and volume of PAC services, including decisions to include or exclude an acute hospital readmission and 3) the definition of the end point of an episode. The differences in PAC episode payments by geographic area show the geographic variation in the percent of beneficiaries discharged to PAC and the state variation in mean payment per PAC user. The results of these analyses provide information on the makeup of service use under different episode definitions and highlight considerations for providers and payers testing alternatives for bundled payment.