Primary Care is Cost Effective!
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A recent study by Johns Hopkins University found that traditional fee-for-service Medicare could save approximately $10 billion a year by avoiding unnecessary hospitalizations.
The study, commissioned by the Alliance of Community Health Plans (ACHP), compared the Medicare Retiree Advantage programs of community based health plans, including Capital Health Plan, against traditional Medicare.
In traditional Medicare, hospital readmissions account for $17 billion of the $102.6 billion spent in hospital payments each year. The results of the study show that Capital Health Plan outperformed traditional Medicare in hospital readmission rates, preventable ER visits, and preventable hospital admissions. With rates similar to that of CHP, traditional Medicare could save approximately $10 billion annually.
Chief Medical Officer Dr. Nancy Van Vessem explains how we are able to accomplish these low rates:
“At Capital Health Plan we believe that access to strong, consistent outpatient care by a physician who knows the patient is the best defense for avoiding unnecessary hospital admissions and emergency room visits.”
“That same relationship improves transitions of care between the inpatient and outpatient setting and contributes to CHP’s low rate of readmissions within 30 days. Our Care Coordination Department and the nurses in our staff model practice, contact at-risk members to ensure that follow-up appointments with their primary care physician are organized within a week of discharge from the hospital.”
The Johns Hopkins research further supports Capital Health Plan’s philosophy that focusing on coordinated care and preventative health maintenance will improve care and lower costs.
| Hospital Readmission Rate Within 30 days | Preventable ER Visits (per 100 member months) | Preventable Hospital Visits (per 100 member months) | |
| Capital Health Plan | 7.68% | 2.76 | 1.44 |
| Medicare Fee-for-Service | 18.6% | 15.5 | 19.0 |
