Health Economic Analysis of an All-Virtual, At-Home Acute Care Model

Area of Science:

• Health Economics
• Digital Health
• Acute Care Models

Background:

• The Safer@Home program is an all-virtual, at-home acute care model.
• This model demonstrated a potential to reduce hospital length of stay by an average of 4 days.
• The program currently lacks reimbursement, impacting its financial viability.

Purpose of the Study:

• To estimate the costs and savings associated with the Safer@Home program.
• To evaluate the program's financial impact from both hospital and payer perspectives.

Main Methods:

• A retrospective economic evaluation was conducted.
• The study analyzed data from a large, academic, level I trauma hospital in Los Angeles, California.
• Patients enrolled in Safer@Home were compared with matched controls receiving traditional in-hospital care.

Main Results:

• The Safer@Home program resulted in net hospital savings of $5.60 million.
• Savings were observed for Medicaid and unfunded patients, but losses occurred for Medicare and commercially insured patients due to revenue reduction.
• The program was cost-saving to payers in all modeled scenarios absent reimbursement.

Conclusions:

• The virtual acute care program demonstrated potential for hospital and payer savings.
• Without reimbursement, cost-effectiveness was limited to specific patient populations (Medicaid/uninsured).
• Payer reform is essential for the widespread adoption and financial sustainability of such innovative care models.