Alliance Project to Determine How Home Care Can Reduce Healthcare Costs

The Alliance for Home Health Quality and Innovation announced its Clinically Appropriate and Cost-Effective Placement (CACEP) Project.

The initiative examines Medicare claims data to determine how the appropriate use of care settings across the Medicare program can result in greater efficiency and reduced healthcare costs. According to the Alliance, the home healthcare community has already undertaken proactive steps to analyze three years of beneficiary claims, including assessment data from post-acute care settings, from years 2007 to 2009.

The firm will release a series of working papers to address the following questions:

  • How is home healthcare currently meeting patient needs and providing efficient care? Can clinically appropriate use of home healthcare enable Medicare savings through moderated use of facility-based care?
  • How is home healthcare used within post-acute care episode pathways and what impact does this have on Medicare costs per patient episode?
  • How prevalent are hospital readmissions and what is the potential for home healthcare to help avoid these events? This comprehensive set of working papers will culminate in the release of a final report in September, which will explore the manner in which home healthcare can help the Medicare program make more effective and efficient use of its scarce resources.

“The Alliance is excited about this opportunity to help inform health policy discussions concerning coordination of care, post-acute care reform and payment bundling,” said Teresa Lee, Executive Director of the Alliance. “This study represents our deep commitment to the delivery of high-quality research, and we look forward to the dialogue this comprehensive data analysis will generate among policy makers and our colleagues across the post-acute care continuum.”

John Yedinak



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