Data Shows Addressing Social Barriers to Health Drives Cost-Savings

COLUMBIA, Maryland—AbsoluteCare, a provider of value-based integrated health care, shared insights from its latest white paper, “Beyond Medicine: The Cost-saving Power of Addressing Social Drivers of Health.” The paper revealed that certain social determinants of health, such as housing, transportation and even zip code, can lead to higher hospital admissions and health care issues. Another key component of the paper was how AbsoluteCare is tackling these issues.

“At AbsoluteCare, we believe in going beyond medicine—that addressing social determinants of health is not just a moral imperative but also a smart investment,” said Mike Radu, CEO of AbsoluteCare. “The cost savings underscore the importance of our holistic approach to health care, which prioritizes the whole person and their unique circumstances. By helping our members with their most pressing needs, we’re reducing their reliance on the emergency department and hospital use for support that can come proactively from elsewhere.”

“In addition to traditional medical care, we look beyond medicine by screening for social drivers of health, identifying necessary resources using a strength-based approach, ensuring members access the resources and empowering the member to establish their path to sustainability,” said Faith Tarver, vice president of behavioral health at AbsoluteCare. “This approach allows us to co-create care plans that honor each member’s unique journey and empower them to achieve long-term health and independence.”

Through targeted interventions, community and not-for-profit partnerships and wraparound support, AbsoluteCare explained how it tackles challenges such as food insecurity, unstable housing and limited access to transportation—factors that often stand between vulnerable populations and lasting health outcomes. One of their strategies for addressing immediate social needs is the AbsoluteCare’s Member Fund—a self-funded account established in each AbsoluteCare market to support members when community-based resources aren’t directly or readily available.

Through the Member Fund, AbsoluteCare provided 2,753 instances of direct assistance to 762 members from 2022 to 2024, supporting needs such as durable medical equipment, housing, transportation and more. AbsoluteCare said simple things like cell phone minutes to connect with care teams, a government ID to unlock services or an Uber ride to an appointment can make the biggest difference. Every $1 invested delivered a $13 cost savings, driven by reduced avoidable utilization—a 16% reduction in the monthly total cost of care, according to AbsoluteCare.