Cost and Utilization Implications of a Health Plan's Home-Based Palliative Care Program

A California-based health plan offered home-based palliative care (HBPC) to members who needed support at home but did not yet qualify for hospice. This study compares hospital and emergency department (ED) utilization and costs and mortality for individuals receiving HBPC to a cohort not receiving palliative care services (Usual Care). This is an observational retrospective study using claims data covering a prestudy period and a study period during which time half of the study population received HBPC services. Seriously ill individuals who received HBPC were matched with those receiving Usual Care using a propensity-based matching algorithm. Interdisciplinary teams from home health and hospice agencies provided HBPC services. Outcome measures included hospital and ED utilization and cost before and during the study period and mortality during the study period. For both groups, hospital and ED utilization and associated costs were higher during the prestudy period than during the study period. No differences were found in outcome measures between groups during the study period. Average time in the study period was longer for the HBPC group than that in the Usual Care group, indicating that they lived longer or transitioned to hospice later. Although individuals in both groups were living with serious illnesses for which worsening health and increased acute care utilization are expected over time, both groups had reduced acute care utilization and costs during the study period compared with the prestudy period. Reduced utilization and costs were equivalent for both groups.