Volume 54, Issue 6 p. 1346-1356
RESEARCH ARTICLE

Medical foster home is less costly than traditional nursing home care

Cari Levy MD, PhD

Corresponding Author

Cari Levy MD, PhD

Denver-Seattle Center of Innovation at the Denver VA Medical Center, Denver, Colorado

Division of Health Care Policy and Research, University of Colorado School of Medicine, Aurora, Colorado

Correspondence

Cari Levy, MD, PhD, Rocky Mountain Regional Veterans Affairs Medical Center, 1700 Wheeling St, Aurora, CO 80045.

Email: Cari.Levy@VA.gov

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Emily A. Whitfield PhD

Emily A. Whitfield PhD

Denver-Seattle Center of Innovation at the Denver VA Medical Center, Denver, Colorado

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Roee Gutman PhD

Roee Gutman PhD

Brown University, Providence, Rhode Island

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First published: 22 July 2019
Citations: 5

Abstract

Objective

To compare the costs of Community Nursing Homes (CNHs) to Medical Foster Homes (MFHs) at Veteran Health Administration (VHA) Medical Centers that established MFH programs.

Data Sources

Episode and costs data were derived from VA and Medicare files (inpatient, outpatient, emergency room, skilled nursing facility, dialysis, and hospice).

Study Design

Propensity scores matched 354 MFH to 1693 CNH Veterans on demographics, clinical characteristics, health care utilization, and costs.

Data Extraction Methods

Data were retrieved for years 2010-2011 from the VA Corporate Data Warehouse, VA Health Data Repository, and the VA MFH Program through the VA Informatics and Computing Infrastructure (VINCI).

Principal Findings

After matching on unique characteristics of MFH Veterans, costs were $71.28 less per day alive compared to CNH care. Home-based and mental health care costs increased with savings largely attributable to avoiding CNH residential care. When average out-of-pocket payments by Veterans of $74/day are considered, MFH is at least cost neutral. Mortality was 12 percent higher among matched Veterans in CNHs.

Conclusions

MFHs may serve as alternatives to traditional CNH care that do not increase total costs with mortality benefits. Future work should examine the differences for functional disability subgroups.

The full text of this article hosted at iucr.org is unavailable due to technical difficulties.