Philips, Banner telehealth program cut costs, hospitalizations, readmissions

Banner Health and Royal Philips have released results of a pilot study on utilizing telehealth to better care for patients with chronic diseases while reducing costs and trips to the hospital.

Philips’ Intensive Ambulatory Care (IAC) pilot study, an addition to Banner’s telehealth program, focuses specifically on patients with complex chronic medical conditions. These patients account for more than half of all healthcare spending, adding urgency to finding ways to decrease costs while improving care.

The study followed 128 patients for a year before and a year after the implementation of IAC. Results included:

• Overall cost of care was reduced by 34.5 percent due to a reduction in the number of hospitalizations, days spent in the hospital and outpatient costs.
• The rate of hospitalization decreased by 49.5 percent. Before IAC, hospitalization rates were measured at 10.9 per 100 patients per month. After IAC implementation, this number fell to 5.5 hospitalizations per 100 patients per month.
• The number of days spent in the hospital fell 50 percent, with the average 60 days in the hospital per 100 patients a month dropping to 30.  
• The 30-day readmission rate decreased from 20 percent to 5 percent after IAC enrollment.

"This updated data of our telehealth program shows that we were able to achieve even more significant cost savings and reduced hospitalization rates by continuing to leverage Philips' powerful telehealth solution," said Deb Dahl, vice president of patient care innovation for Banner Health. "We have been able to make significant improvements with our most complex patients over long periods of time, and the results can potentially be applied to better manage the health of other patient populations."

With the introduction of IAC, patients are spending less time in the hospital and saving money. With the prolonged evaluation, chronic patients begin to show their true behaviors and revel exactly what is needed to achieve this level of improved care.

“Connected care technology can be a powerful tool in improving care while reducing costs, and having data that demonstrates its long-term success is critical to driving wider adoption by both patients and care providers," said Manu Varma, general manager of Philips, Hospital to Home. "We applaud Banner for the dedicated investments and inventive processes they have put in place allowing them to achieve these substantial results."