Michigan Blues Saves $155 Million Via Medical Homes
The patient-centered medical home program created by Blue Cross Blue Shield of Michigan has been a success, leading to an estimated savings of $155 million during its first three years of operation, as well as improvements in quality of care.
Medical homes have been implemented through a variety of pilot projects in recent years. Patients are assigned a regular “home” to initiate all care; it may be a physician's office for a commercial health plan enrollee, or a community clinic for lower-income patients. A specific focus is placed on management of chronic conditions such as diabetes and asthma. Patients are also offered services such as 24-hour phone hotlines or same-day appointments to access care quickly.
According to data generated by the Michigan Blues, the medical home model has cut patient per medical costs by $26.37 per month for adult patients. However, there was no associated cost reduction with pediatric patients. Quality measures also increased 3.5 percent, and the use of preventative care measures increased 5.1 percent.
“The partnerships established between the Blues, Michigan physicians and their practice groups have been instrumental in the success we are achieving together,” said Daniel J. Loepp, chief executive officer of the Michigan Blues.
The Michigan Blues have collaborated with physicians and hospitals throughout the state since 2005 to improve patient safety and quality of care, as well as create pay-for-performance incentive programs.
Altogether, the cost savings estimates were for patients enrolled in medical homes between July 2008 and June 2011, and guaranteed by the Michigan Blues's actuary.
However, the gains made through the medical homes were not instantaneous. Most of the improvements occurred after at least one year of enrollment in such a program.
“It may take time for these processes to fully mature." said Michael Paustian, manager of the Michigan Blues's department of clinical epidemiology and biostatistics. “This tells us that patients benefit from higher quality and improved preventive care even as physician practices are progressing toward full implementation of the patient-centered medical home model.
The analysis of the data regarding the Michigan Blues's medical homes program was funded by the U.S. Agency for Healthcare Research and Quality. Its findings were published in the most recent issue of the Home Health Services Research Journal.
