Wednesday, May 13, 2009

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.”