New research shows that patients’ use of hospice care contributed to $3.5 billion in savings for Medicare in 2019, while providing multiple benefits to patients, families, and caregivers. The study, conducted by NORC at the University of Chicago, is an analysis of enrollment and administrative claims data for Medicare patients covered by Medicare Advantage and original Medicare, and was funded by the National Association for Home Care & Hospice (NAHC) and the National Hospice and Palliative Care Organization (NHPCO).

For the study, NORC compared the utilization of health services and costs of care for the last 12 months of life of more than 500,000 Medicare beneficiaries who died in 2019 and had a hospice stay immediately prior to death to more than 457,000 Medicare decedents who had similar risk profiles but did not have a hospice stay.

Key findings include the following:

- Medicare spending for those who received hospice care was $3.5 billion less than it would have been had they not received hospice care.

- In the last year of life, the total costs of care to Medicare for beneficiaries who used hospice was 3.1% lower than for beneficiaries who did not use hospice.

- Hospice is associated with lower Medicare end-of-life expenditures when hospice lengths of stay are 11 days or longer.

- At any length of stay, hospice care benefits patients, family members, and caregivers, including increased satisfaction and quality of life, improved pain control, reduced physical and emotional distress, and reduced prolonged grief and other emotional distress.

"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.

"One important finding of this research is that generally as hospice lengths of stay increased, so did Medicare savings. One of the main points of feedback we hear from families of hospice patients is ‘We only wish we had chosen hospice earlier.’ Hospice stays of less than 15 days don’t give enough time for patients and families to benefit fully from the person-centered care that hospice provides. Yet, 50% of hospice patients receive 17 days or less of hospice care," added NAHC President, William A. Dombi.

"Policymakers, health systems, and healthcare payers reading this groundbreaking research should see an opportunity to support patient interests and family wellbeing, while also driving savings for Medicare by ensuring timely patient access to hospice care," Dombi concluded.

To access the full report, report slides, an executive summary and infographic, click here