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Home Health & Hospice Week

Statistics - Know Your Facts:

Hospice Costs

Published on Thu Feb 19, 2004

Hospice may be more cost effective for younger patients than older ones, says a new study - and that could change how hospices do business in the future.

A recent RAND Corp. study is recommending clinicians and policy-makers rethink their hospice approach (see related story, "Hospice Costs More Than Traditional Care, Study Claims"), and here are some of the facts they'll be basing their decisions upon:

  • The ratio of Medicare beneficiaries who used the hospice benefit increased from 9 percent in 1992 to 23 percent in 2000.

  • Costs for non-cancer study patients ages 68 to 79 averaged $1,356 more in the last year of life than those receiving traditional medical care.

  • Costs were $3,725 more for non-cancer patients age 85 or older in the last year of life than those receiving traditional medical care.

  • Patients with heart failure had costs that were 16 percent higher on average than heart failure study subjects not enrolled in hospice care.

  • Costs were $1,703 lower than traditional medical care in the last year of life for cancer patients ages 68 to 79 who used hospice, while costs were $1,193 higher for cancer patients ages 85 and older using hospice.

    Source: RAND Corp. summary of hospice cost study .

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