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Return‐on‐Investment (ROI) Analyses of an Inpatient Lay Health Worker Model on 30‐Day Readmission Rates in a Rural Community Hospital

Bibliographic Data

ID19433433
AuthorsRoberto Cardarelli (0000-0002-4112-2042, Department of Family & Community Medicine University of Kentucky College of Medicine Lexington Kentucky, corresponding author), Gregory Bausch (St. Claire Regional Medical Center Morehead Kentucky, corresponding author), Joan Murdock (College of Allied Health Sciences University of Cincinnati Cincinnati Ohio, corresponding author), Michelle Renee Chyatte (College of Allied Health Sciences University of Cincinnati Cincinnati Ohio), Michelle Chyatte (0009-0008-8144-7520, University of Cincinnati Medical Center, corresponding author)
Year2018
Volume34
Issue4
Pages411-422
Publication date2018-09-01
Open AccessYes
TypeARTICLE
VenueThe Journal of Rural Health (JOURNAL)
Journal identifiersISSN: 0890-765X • E-ISSN: 1748-0361
PublisherWiley (PUBLISHER • GB)
DOI10.1111/jrh.12250
PMID28685850
OpenAlexW2732970629
LanguageEN
Citations received1
References cited32

PURPOSE: The purpose of the study was to assess the return-on-investment (ROI) of an inpatient lay health worker (LHW) model in a rural Appalachian community hospital impacting 30-day readmission rates. METHODS: The Bridges to Home (BTH) study completed an evaluation in 2015 of an inpatient LHW model in a rural Kentucky hospital that demonstrated a reduction in 30-day readmission rates by 47.7% compared to a baseline period. Using the hospital's utilization and financial data, a validated ROI calculator specific to care transition programs was used to assess the ROI of the BTH model comparing 3 types of payment models including Diagnosis Related Group (DRG)-only payments, pay-for-performance (P4P) contracts, and accountable care organizations (ACOs). FINDINGS: The BTH program had a -$0.67 ROI if the hospital had only a DRG-based payment model. If the hospital had P4P contracts with payers and 0.1% of its annual operating revenue was at risk, the ROI increased to $7.03 for every $1 spent on the BTH program. However, if the hospital was an ACO as was the case for this study's community hospital, the ROI significantly increased to $38.48 for every $1 spent on the BTH program. CONCLUSIONS: The BTH model showed a viable ROI to be considered by community hospitals that are part of an ACO or P4P program. A LHW care transition model may be a cost-effective alternative for impacting excess 30-day readmissions and avoiding associated penalties for hospital systems with a value-based payment model

Business · Community hospital · Health care · Payment · Return on investment · Revenue · Healthcare Policy and Management · Heart Failure Treatment and Management · Medicine · Nursing · Primary Care and Health Outcomes · Emergency Medicine · Finance

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Citations per year0.25
Citation span2022 - 2022 (1)
Highly citedNo

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