Be it a subscription, product, or service, adding a new expense to an individual’s budget appears counterintuitive when it comes to savings. But as with worthwhile investments, studies prove that acquiring hospice care services actually poses economic advantages for patients and their families alike.

Reduced spending on Medicare patients under hospice care

One such study was conducted by the NORC (Naturally Occurring Retirement Community) at the University of Chicago that analyzed enrollment and administrative claims data for Medicare patients covered by Medicare Advantage and Traditional Medicare.

For 2019, they estimated that Medicare saved about $3.5 billion in spending because of patients who availed hospice care services. The study also noted that the total costs to Medicare for beneficiaries who acquired hospice services were lower by 3.1% than for beneficiaries who opted out of hospice care.

“Multiple studies over many years have confirmed what hospice providers know: hospice care improves the end-of-life journey for patients and families. This new NORC study shows that in addition to improving care, hospice saves tax dollars,” said NHPCO COO and Interim CEO, Ben Marcantonio, the National Hospice and Palliative Care Organization reported.

Meanwhile, a study in South Korea published in 2023 looked into the effects of hospital-based hospice care on the healthcare expenditures of cancer patients.

Cancer patients saving on healthcare costs

Using customized health information data from South Korea’s National Health Insurance Service, the authors conducted a retrospective cohort study involving individuals diagnosed with stomach, colorectal, and lung cancer between 2003 and 2012.

The said group of individuals served as the study’s new cancer patients, while those “who died under hospital-based hospice care during the follow-up period from January 2016 to December 2018 comprised the treatment group,” the authors said.

The authors assigned healthcare expenditure as the dependent variable and used generalized estimating equations.

Results and outcomes

After evaluating the study’s entire population, the authors noted that 30% of the subjects equating to 2,219 patients availed of the hospital’s hospice care services. This group, they discovered, had a lower odds ratio of healthcare expenditure than those who did not.

They found that South Korean cancer patients who underwent hospice care reduced their healthcare costs as compared to those who had routine hospital care.

The study aims to highlight the importance of hospice care services, in hopes of encouraging people who may be hesitant to avail hospice care, the authors noted. They also hope to provide useful insights for policymakers and healthcare administrators to help improve existing healthcare systems and practices.

Making quality hospice care affordable at Solano Care

Especially in these trying times, Solano Care offers exceptional care, comfort, and compassion to alleviate the pain and stress associated with life-limiting illnesses — whether at home or in a facility — at affordable prices.

Caring for our patients remains our top priority 24/7, because we believe that peace of mind is priceless.