We have discussed the goal of the “medical home” in the last few blog posts — improve primary care so fewer people need to go to the hospital. States experimenting with this nationwide movement say that when practiced by doctors serving Medicaid patients, it can enhance overall health conditions and consequently save billions of dollars in the long run.
But does it save money in the short term and help the financial management of healthcare organizations? Some studies reveal that patient-centered medical homes definitively showed real cost savings, even when not involved with a Medicaid program. Federal health officials are so convinced medical homes save money that they’ve offered to pay most of the bill for states to test them. Starting in 2013, states that pursue a variant of the concept, called PCHCH will get a 90 percent federal subsidy. Instead of applying medical home techniques to all patients, health homes would specialize in those with multiple chronic conditions, including mental illness.
By promoting disease management, patient education, electronic record-keeping and more personalized care, medical homes are intended to improve the lives of people with chronic diseases such as diabetes and asthma and help healthy patients prevent illnesses. Overall spending is supposed to shrink because a sharper focus on individual patients leads to fewer emergency room visits, hospital readmissions, redundant and expensive tests.
The overall sense is that the medical home model is really promising but does remain to be seen just how much money will be saved quickly. Medical homes that focus most of their resources on patients with complex cases, such as those described in the federal government’s health home program, will likely generate the biggest measurable savings. In contrast, when you look at a full panel of patients in a primary care medical home, there aren’t as many opportunities to improve care, and it’s harder to measure effects.
Whatever the studies may show, patient-centered medical homes are an undeniably appealing concept. When more emphasis is placed on primary care, health improves and overall costs go down. At least 41 states are now testing the medical home concept, and various healthcare management organizations are applying for PCHCH Accreditation which will enable PCHCH auditors to assists healthcare facilities to qualify as medical homes.
For doctors, the experiment can mean more money and the satisfaction of seeing patients do well. Instead of simply getting paid for each office visit, doctors are paid an additional monthly fee to provide better, more efficient care – a value-based purchasing extention of one of the facets of the Affrodable Care Act. And instead of handling all of their patients’ needs on their own, doctors are assisted by a team of care coordinators like caseworkers, psychologists and specialized pharmacists.
All of this takes time and money, but supporters say the results are worth it. An added bonus has been that medical homes attract more primary care physicians to the Medicaid program and, in many cases, participating doctors provide the same kind of enhanced care to all of their patients, so the entire community benefits.








