Study Reveals Opportunities for Cost-Savings Related to Chronic Care

Recent research conducted by the Urban Institute highlights several opportunities to improve chronic care conditions and associated healthcare costs.

 



Researchers studied data from the California Public Employees' Retirement System, which covers nearly 1.3 million active and retired state, local government and school employees and their family members. Their research showed of the $1.6 billion spent in 2008 on healthcare services used under CalPERS, $362 million (22.4 percent) was attributable to chronic diseases that are preventable through changes in diet and physical activity. Those chronic conditions include diabetes, hypertension, diabetes and hypertension together or either one of these conditions in addition to cerebrovascular disease, heart disease or renal disease. Their study also revealed the following areas of opportunity to close the gap in chronic illness:

•    Preventable costs are larger among men ($195 million) than women ($166 million).
•    Preventable spending by men and women in their 60s are 33.4 and 42.5 percent of total spending, respectively.
•    Ethnic groups with the highest proportion of preventable spending belong to Filipinos (38.5 percent) and Asians (34.2 percent), and the groups with the lowest such shares are non-Hispanic whites (26.4 percent) and Pacific Islanders (26.7 percent).

The research also revealed areas of opportunity for chronic care in specific counties and types of state agency work.

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