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Palliative Program’s Impact on Health System Finances

J Oncol Pract; ePub 2017 Feb 28; Isenberg, et al

A palliative care unit (PCU) and palliative care program at a large academic medical center favorably impacted the institution and resulted in patient-centered care, according to a recent study.

Investigators evaluated the Johns Hopkins Medical Institutions’ palliative care program. They calculated the per-day variable cost before and after transfer to the PCU; estimated consultation savings; and determined professional fees assuming a 50% collection rate. Among the results:

  • The total positive financial impact of the palliative care program was nearly $3.5 million.
  • 153 patients were transferred to the PCU, including 60% with cancer.
  • Length of stay averaged 5.11 days.
  • The daily loss pretransfer to the PCU of ~$1,800 was reduced to ~$1,350 in the PCU.
  • The PCU saved more than $350,000 in variable costs, or ~$450 per transfer.
  • Cost savings for palliative care consultations were estimated to be $2.75 million.
  • $370,000 in professional fees were collected.

Citation:

Isenberg S, Lu C, McQuade J, et al. Impact of a new palliative care program on health system finances: An analysis of the palliative care program inpatient unit and consultations At Johns Hopkins Medical Institutions. [Published online ahead of print February 28, 2017]. J Oncol Pract. doi:10.1200/JOP.2016.014860.