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Expenditure Reductions Associated with a Social Service Referral Program
Zachary Pruitt1, Nnadozie Emechebe2, Troy Quast1
11 Department of Health Policy and Management, College of Public Health, University of South Florida , Tampa, Florida.
Population Health Management
|April 18, 2018
Summary
Integrating social services into healthcare can reduce costs. Meeting social needs like housing and food security led to a $2443 greater decrease in healthcare spending compared to unmet needs.
Area of Science:
- Health Services Research
- Social Determinants of Health
- Health Economics
Background:
- Coordination between medical and social services shows promise for improving health outcomes and reducing healthcare costs.
- Social needs such as homelessness, transportation barriers, and food insecurity significantly impact patient well-being and healthcare utilization.
Purpose of the Study:
- To evaluate the cost savings associated with a managed care organization's call center-based social service referral program.
- To quantify the impact of meeting social needs on healthcare expenditures.
Main Methods:
- Linked social service referral data with healthcare claims data for analysis.
- Compared healthcare expenditures in the two years before and after the first social service referral.
- Utilized generalized estimating equations regression analysis to estimate changes in mean expenditures.
- Controlled for group differences when comparing participants with met versus unmet social needs.
Main Results:
- Participants who had all their social needs met experienced a $2443 (10%) greater decrease in second-year mean healthcare expenditures compared to those with no needs met.
- This difference was observed after controlling for other group characteristics.
- The findings indicate a significant financial benefit from addressing social determinants of health.
Conclusions:
- Integrating medical and social services can lead to substantial healthcare savings.
- Managed care organizations can achieve financial benefits by implementing programs that address patients' social needs.
- Policy initiatives encouraging financial accountability for total patient well-being may foster integrated care models.
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