Home Healthcare Can Leverage Healthcare Savings to Sell into MCOs and Hospitals

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“Patients who receive home health care after a hospital discharge are saving the health care system some serious dough, on average,” according to a recent study published in the American Journal of Medicine (AJM) and discussed at length by Home Health Care News.

The study, conducted by the Cleveland Clinic Lerner College of Medicine of Case Western Reserve University, looked at 65,541 patients who were discharged from the hospital with self-care and 6,560 home health care patients over a 365-day-post-discharge period.

According to the study, the benefits were significant, including:

  • Home health care was associated with an average unadjusted savings of $15,233 per patient, or $6,433 when adjusted for covariates.
  • Home health care “independently decreased the hazard of follow-up readmission and death.”
  • Home health care was associated with significant savings and clinical benefits for certain groups, including digestive disease, heart and vascular, medicine, neurological and urology & kidney institutes.

Likely, this is no surprise to home health agencies who see the positive results of their efforts day in and day out with each patient. However, what this study demonstrates is that there is significant benefit for the healthcare system to more fully integrate home health care into the patient care process.

So, how can home health care agencies enhance hospital referrals and partner with managed care organizations? In addition to leveraging this study, home health agencies can prove their value through readmission metrics:


Read our tutorial on how to best sell to the C-Suite using readmission rate data, market share and DRG distributions.

Managed Care Organizations

Read our tutorial on how to use readmission rate data to create more lucrative opportunities with managed care organizations.

The Bottom Line

As shown in this study, data talks. Sales efforts, regardless of the audience, need to focus on metrics to prove home health agencies value whether that is through cost savings, readmission reductions or against competitors.