Study shows home healthcare provides Medicare with better value

The Alliance for Home Health Quality and Innovation released a study April 5 showing that home healthcare saves Medicare money when it is used as the first choice for care after hospitalization for conditions such as major joint replacement.

The study, conducted as part of the Clinically Appropriate and Cost-Effective Placement Project, examined Medicare claims data. “The data provides unique insight into how home healthcare is being utilized in comparison to other sites of care and how Medicare payment compare across settings, which can be an invaluable tool in developing new Medicare payment policies,’’ said Allen Dobson, Ph.D., lead researcher on the study.

For example, the study looked at records of patients with major joint replacement, and compared home health, skilled nursing homes, long-term hospitals and inpatient rehabilitation facilities. The average Medicare payment for an “episode” of care was $5,411 lower with home health than the overall average for all types of care.

“The data suggests that home healthcare can generate significant savings across multiple clinical conditions,’’ the alliance said. The study is available on the alliance’s website.