There has been a tremendous push by the federal government to reduce hospital readmission rates in recent years. A significant motivator for reducing these rates is reducing Medicaid expenses that are often paid to hospitals, including for readmissions.
A healthcare network in Pennsylvania has taken direct strides in improving its home care program to help save millions of dollars through the years. Allegheny Health Network (AHN), based out of Pittsburgh, launched its home care program last year. As a result, the health network was able to improve the number and quality of services it provides to its clients, improving connectivity after discharge from the hospital, ultimately saving approximately $5 million during that time.
The majority of those savings have come from hospital readmissions that were no longer required.