Healthcare News & Insights

Home health care services reduce hospital spending

A new study confirms it: More extensive use of home health care services could slash hospital spending by billions each year.

That’s the take-away from a new study by researchers at Columbia University.

According to the study, the growth of home health care services over the past 10 years reduced hospital payroll costs by about $25 billion just for the year 2008. It’s reasonable to think that effect will continue to grow as usage of home health care services does.

The study was funded by Home Instead, Inc.

According to the report, every thousand dollars spent on home health payrolls saved at least $1,542 in hospital payroll expenses — and could have saved as much as $2,315 in some circumstances. Researchers also noted that the average length of stays in hospitals dropped by over 4% between 1998 and 2008 — a decrease believed to be largely due to the greater availability of home health care services.

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