Ochsner program boosts pharmacy spend, lowers overall costs

Despite rising pharmacy costs, Ochsner Health has grabbed a healthy  return on investment after expanding its remote-patient monitoring program, according to an Aug. 12 article from the American Medical Association. 

The New Orleans-based system recently introduced the monitoring program to patients who are enrolled in its Medicare Shared Savings Program, which includes value-based care and risk-based contracts, the AMA said. Ochsner also grew its telehealth services, Connected Health.

After these moves, the average member annually saved $2,200 — and this success is also marked by 79% of enrolled members achieving their blood pressure goals and 81% reaching their A1C goals after six months. 

Other successes include:

  • A 45% reduction in emergency department visits among patients enrolled in the hypertension program. 
  • A 38% decrease in hospital admissions among those in the hypertension program.
  • A 30% drop in ED visits among patients in the Type 2 diabetes program.
  • A 15% reduction in hospital admissions among patients in the Type 2 diabetes program.

"The interesting thing is that the [initial] pharmacy cost went up because we got people on the medications that they're supposed to be on," Chief Medical Officer Sidney "Beau" Raymond, MD, told AMA.

"By doing what we're supposed to be doing regarding the right meds and the right treatment and the right engagement, … people are going to the ER less, people get[ting] admitted less," he said. "That's where the actual benefit comes from. And last time I checked, we really don't want people going to the hospital when we can prevent it."

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