Home Palliative Care Savings

Marvin J Gordon1, Tao Le1, Emmet W Lee2

  • 1Department of Medical Affairs, Health Net, Inc., Cypress, California, USA.

Insights

Home palliative care (HPC) programs reduced annual healthcare costs by 16.7% for enrolled members. Longer enrollment periods (6-12 months) yielded greater cost savings compared to shorter periods (1-5 months).

Area of Science:

  • Health Economics
  • Palliative Care Research
  • Healthcare Management

Background:

  • Home palliative care (HPC) programs aim to manage costs while providing patient support.
  • Evaluating the cost-effectiveness of HPC across diverse insurance models is crucial for healthcare resource allocation.

Purpose of the Study:

  • To assess the impact of an adult home palliative care program on annual healthcare expenditures.
  • To determine if HPC enrollment leads to decreased healthcare costs across multiple insurance product lines and vendors.

Main Methods:

  • A retrospective review compared annual healthcare costs for 2019.
  • 396 members enrolled in HPC were compared to 110 members receiving usual care.
  • Cost savings were analyzed based on enrollment duration (1-5 months vs. 6-12 months).

Main Results:

  • HPC enrollment resulted in an average annual cost saving of $24,643 per member (16.7% decrease).
  • Members enrolled for 6-12 months showed higher savings ($26,409/member, 17.9% decrease) than those enrolled for 1-5 months ($23,314/member, 15.8% decrease).
  • Commercial insurance products experienced a 51% cost decrease, while Medicaid costs increased.

Conclusions:

  • Adult home-based palliative care is effective in reducing overall medical costs.
  • Longer enrollment in HPC programs correlates with greater cost savings.
  • Program effectiveness varies by insurance product line, with commercial insurance showing significant savings and Medicaid showing increased costs.

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