A new report says early use of home health care services following a hospital stay by patients with at least one chronic disease saved Medicare $1.71 billion during 2005-2006. The study, sponsored by the Alliance for Home Health Quality and Innovation (AHHQI), also found that an additional $1.77 billion would have been saved in the same period if all Medicare beneficiaries with similar chronic diseases had accessed home health care services.
Karen McFadden, Florida Hospital Memorial Home Health's Administrative Director, isn’t surprised by this news.
“Home care is a cost-effective service for individuals recuperating from a hospital stay and for those who, because of a functional or cognitive disability, are unable to take care of themselves,” she said. “In 2007 the average Medicare charge for one hospital day was $5,765 compared to the cost of a home health visit of $132.”
Home care can also encourage patients to take an active role in their care and can even reduce the number of hospital re-admissions.
Approximately 12.7% of the savings is attributable to reductions in hospital re-admissions, and it is presumed that the remaining savings accrue from avoiding more costly institutional settings. AHHQI believes that the unrealized savings identified in this study could allow Medicare to save $31.1 billion over the next 10 years by expanding access to home health for chronic disease patients.
In addition to the dramatic cost savings, the study also found that patients who received home health care soon after hospital discharge were significantly less likely to be re-hospitalized, providing even more savings to the Medicare system. The study population included Medicare beneficiaries with a primary or secondary diagnosis of diabetes, chronic obstructive pulmonary disease (COPD), or congestive health failure (CHF) – chronic medical conditions that represent large costs to the Medicare system.
“At Florida Hospital Memorial Home Health, we strive to minimize preventable hospital re-admissions and our staff continually works with patients and their families to teach them how to manage their disease so they can avoid returning to the hospital,” McFadden said.
This is a goal that McFadden and her team have not only reached for, but also achieved, as Florida Hospital Memorial Home Health ranks in the top 5% nationwide for low re-hospitalization rates.
Significantly, 86% of people who qualify for Medicare have at least one chronic condition. But only 8.9% of Medicare beneficiaries currently use home health services, a fact attributed in large part to the program’s requirement that an individual be “homebound” and unable to leave the home without significant assistance in order to receive the benefit.
“Many people are not aware that home care services are an option,” McFadden said. “Yet home care is one of the few services covered by Medicare that does not require a patient to co-pay.”
AHHQI believes that expanding the availability of home health care services for people with chronic conditions within Medicare would yield even greater savings to our health care system.
Homecare encompasses a wide range of health and social services that are delivered at home to recovering, disabled, chronically or terminally ill persons in need of medical, nursing, social or therapeutic treatment. Examples of specific needs include disease education, medication management, infusion therapy, care after surgery, tube feedings, wound or ostomy care, balance and gait training, orthopedic rehabilitation, fall prevention and post stroke recovery.