Home healthcare seen as efficient and affordable form care

Posted on: Monday, April 09, 2012

Health leads who are concerned about the cost of insurance may be surprised to learn that home healthcare can help reduce Medicare spending.

According to the Alliance for Home Health Quality and Innovation, Medicare spending tends to diminish when home healthcare is used as the first outlet to receive treatment after experiencing a serious illness or major medical procedure.

For example, the Alliance notes that after someone receives a major joint replacement - such as hip surgery - using post-acute care at home saves more than $5,400 per patient when contrasted with the average treatment process.

The findings from the report were recently released as two working papers, titled "Clinically Appropriate and Cost-Effective Placement Project." Allen Dobson, the report's lead researcher, said the report suggests home healthcare is a cost-effective post-acute care provider.

"In examining the beneficiary claims data, we identified consistent patterns in Medicare payment across multiple post-acute care settings that show where individuals seek care for clinical conditions, and how much the cost of care varies based on care setting," said Dobson. "The data provide unique insight into how home healthcare is being utilized in comparison to other sites of care and how Medicare payments compare across settings, which can be an invaluable tool in developing new Medicare payment policies."

Posted In: Insurance News, Health Insurance

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