Study Finds Home Health Saves Medicare Billions

WASHINGTON–Patients with at least one chronic disease who used
home health care after hospitalization saved Medicare $1.7 billion
over a two-year period, according to a study released May 11.
 
The study, conducted by health care research company Avalere
Health, found that Medicare beneficiaries with diabetes, COPD or
congestive heart failure who used home health care within three
months of being discharged from a hospital cost the program $1.71
billion less than similar patients who used other forms of
post-acute care. In addition, they had 24,000 fewer
rehospitalizations during the 2005-2006 study period.
 
The report concluded that if all of the chronic care patients had
used home health services early during post-hospital care, Medicare
could have saved an additional $1.77 billion over the two-year
timeframe.
 
Significantly, 86 percent of people who qualify for Medicare have
at least one chronic condition and 40 percent have three or more,
Avalere said. But only 8.9 percent 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.
 
The study was funded by the Alliance for Home Health Quality and
Innovation, but Avalere said it maintained sole discretion with
regard to study methods and interpretation of findings.
 
“Given the size of the chronic care Medicare population, any
serious effort to improve cost-effectiveness of Medicare benefits
will have to grapple with these patients,” said Avalere
Director Alexis Ahlstrom, adding that “additional research
should be done to determine the impact of home health on
non-chronic care patients.”
 
In a statement, AHHQI said it believes the unrealized savings
identified in the study could allow Medicare to save $31.1 billion
over the next 10 years by expanding access to home health for
chronic disease patients.
 
Read the complete report, titled
“Medicare Spending and Rehospitalization for Chronically Ill
Medicare Beneficiaries: Home Health Use Compared to Other
Post-Acute Care Settings.”