Medical Homes Can Reduce Hospitalizations and Total Health Care Costs (Commonweath Fund)

September 10, 2008

Findings from a new study published today in Health Affairs provide evidence that the patient-centered medical home model can improve quality of care and reduce health care costs. According to first-year results from pilot-test sites, Geisinger Health System in Pennsylvania--which has adopted the model--has managed to reduce hospital admissions by 20 percent and save 7 percent in total medical costs.

The patient-centered medical home is a way of delivering primary care that includes around-the-clock access to primary and specialty care, as well as physician and patient access to electronic health records. The article, which was co-written by Geisinger's chief technology and innovation officer, Ronald Paulus, M.D., Commonwealth Fund president and Geisinger board member Karen Davis, and Geisinger president and CEO Glenn Steele, M.D., also describes Geisinger's efforts to redesign its care delivery infrastructure and create incentives aligned to enhanced value in health care delivery.

"These findings point to the potential for innovative and integrated delivery systems to improve health care quality," said Steele. "When hospitals, specialists, and primary care practices work together, with the support of quality improvement and innovation units and information technology systems, they gain the efficiencies and focus needed to deliver high-quality care."

To listen to Geisinger Health System's Paulus and Raymond Nungesser, M.D., talk about how Geisinger has become a leader in delivering high-quality, high-value care, check out the latest edition of New Directions in Health Care: The Commonwealth Fund Podcast.