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Hospice Care Increasing But Cost of Dying Still Very Costly for Medicare

Almost 42% of those who died in U.S. last year were in hospice care; 83% of those were senior citizens covered by Medicare

Oct. 11, 2010 – Statistics show the use of hospice care for the dying is clearly increasing in the U.S. but does not appear to be reducing the cost of treatment in the final months of life. Two studies released online today and a new study from the National Hospice and Palliative Care Organization show end-of-life hospice treatment a growing choice but dying is still costly to Medicare.

Medicare paid for over 83 percent of all hospice care in 2009.

 

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An estimated 41.6 percent of all people who died in the U.S. last year were under the care of a hospice program, reports the NHPCO. That is up from 38.8 percent in 2008 and 35 percent in 2007.

But a study of heart failure patients published online today by the Archives of Internal Medicine finds health care in the last six months of life has become progressively more expensive for Medicare.

A second online report finds more men dying of prostate cancer are receiving hospice care, but that the timing of hospice referral remains poor. Both articles will be published in the February 14 issue of AIM, which is one of the JAMA/Archives journals.

"Provision of high-quality health care at the end of life poses challenges for both health care providers and policy makers," the authors write.

"End-of-life care has many dimensions, including patient preferences and values, health care provider practices and concerns about the appropriate use of resources. Although most patients prefer to die at home, many die in hospitals or nursing homes,” according to the report of heart failure patients.

“The cost of health care at the end of life is also substantial. More than one-quarter of Medicare spending occurs in the last year of life, a figure that has remained stable for several decades."

Kathleen T. Unroe, M.D., M.H.A., of Duke Clinical Research Institute, Durham, N.C., and colleagues studied 229,543 Medicare beneficiaries with heart failure who died between 2000 and 2007. They examined resource use in the last six months of life and calculated costs to Medicare.

Over the entire study period, about 80 percent of patients were hospitalized in the last six months of life. Between 2000 and 2007, days in the intensive care unit increased from 3.5 to 4.6, hospice use increased from 19 percent to nearly 40 percent of patients and unadjusted average costs to Medicare per patient increased 26 percent from $28,766 to $36,216.

After adjusting for age, sex, race, co-occurring medical conditions and region, costs increased by 11 percent.

Older patients tended to have lower costs, while those with kidney disease, lung disease or who were black were more likely to have higher costs.

The trend of increasing hospice use marks a substantial change in end-of-life care, the authors note. "Some studies have found hospice care to be more cost-effective than nonhospice care, but we did not observe lower use of other services as the use of hospice increased," they write.

"Rates of inpatient hospitalization remained high, suggesting that the potential for hospice to prevent costly hospitalizations has yet to be fully realized."

Heart failure is a common cause of death in both the United States and Canada, according to background information in the articles. The condition is listed on one in eight death certificates in the United States, and the five-year death rate among those hospitalized with heart failure is about 70 percent.

Fifty-three percent of prostate cancer patients in hospice

In a second article, Jonathan Bergman, M.D., of the University of California, Los Angeles, and colleagues linked data from Surveillance, Epidemiology and End Results cancer registries to Medicare data to identify 14,521 men dying of prostate cancer in the United States between 1992 and 2005.

Overall, 7,646 of the men (53 percent) had used hospice, for a median (midpoint) of 24 days. African Americans and those with more co-occurring illnesses were less likely to use hospice, whereas having a partner and dying more recently were associated with greater use.

Highlights of NHPCO’s “Facts and Figures: Hospice Care in America”

Hospice Participation in Medicare

The Medicare hospice benefit, enacted by Congress in 1982, is the predominate source of payment for hospice care.

The percentrage of hospice patients covered by the Medicare hospeice benefit versus other payment sources was 83.4% in 2009. The percentage of patient days covered by Medicare versus other sources was 89%

More findings for 2009 include:

  ● 83.0% of hospice patients were 65 years of age or older

  ● More than one-third of hospice patients were 85 years of age or older

  ● A record 1.56 million people with a life-limiting illness received care from the nation's hospice providers.

  ● The average length of service remained steady at 69 days. Median length of service was also steady at 21.1 days (that means half of hospice patients received care for less than three weeks and half received care for more than three weeks).

  ● Routine home care accounted for 95.9 percent of patient care days.

  ● At 68.8 percent, the majority of hospice care was provided in the home, whether the patient's home is a private residence, nursing home, or residential facility.

Findings from the report are based on data from NHPCO's annual survey, the National Data Set, and NHPCO membership data. Secondary sources include Medicare Provider of Services certification data, Medicare hospice cost report data, state-mandated data submissions and state association membership surveys.

For more information about hospice, palliative care, and advance care planning, visit NHPCO's Caring Connections at caringinfo.org (http://caringinfo.org)  or call the HelpLine at 800-658-8898.

Men who enrolled in hospice were less likely to receive high-intensity care, including admission to the intensive care unit, inpatient stays and multiple emergency department visits.

Although hospice use increased over time, almost one-third of patients enrolled in hospice within seven days of death or more than 180 days before dying.

"Hospice stays shorter than seven days are too brief to maximize the benefit of enrollment, and individuals making shorter stays receive fewer services and benefit less from the input of the full interdisciplinary team," the authors write.

"At the other end of the spectrum, the Medicare hospice benefit requires that a primary care physician and a hospice medical director certify that an individual's expected prognosis does not exceed 180 days when he or she is enrolled in hospice."

"Increasing appropriate hospice use may improve the quality of death for men at the end of life while rationalizing health care expenditures during this high-cost period," they conclude.

Editorial: Palliative Care Essential to Properly Treat Patients at the End of Life

"Countries around the world expend substantial resources to relieve the suffering caused by the burden of disease," according to Rosemary Gibson, M.Sc., author of an accompanying editorial.

"Conversations that allow the patient to describe what is important as he or she lives life with serious illness or near life's end should be paramount in guiding the course of treatment," Ms. Gibson writes.

"High-quality palliative care—provided in hospitals, nursing homes, at home or in hospice—can help patients understand their illness and make informed decisions about their care, together with their families. It must be integrated into the care of patients in all settings."

"Only with the explicit goal of relieving the burden of illness, and relieving the burden of treatment, will health care systems fulfill their intended purpose of caring for the patient."
Ms. Gibson led the Robert Wood Johnson Foundation's strategy to improve end-of-life care for more than a decade and is the author of two books.

Cost of Dying, Particularly in Hospital, Also High in Canada

Another article published by the journal online reported on the cost of dying among heart failure patients in Canada.

Padma Kaul, Ph.D., of the University of Alberta, Edmonton, Alberta, Canada, and colleagues evaluated data from 33,144 patients in Canada who died of heart failure between 2000 and 2006. They also assessed resource use in the last six months of life along with costs to the national health care system, as Canada has a single-payer system with universal access.

The percentage of patients who were hospitalized during the last six months of life decreased over the study period, from 84 percent to 76 percent, as did the percentage of patients dying in the hospital (from 60 percent to 54 percent).

However, patients who died in later years were substantially more likely to receive outpatient care in the last six months of life (52.8 percent in 2000 vs. 69.8 percent in 2006), and the average number of visits among those receiving such care increased from 6.4 to 7.7.

In 2006, the average end-of-life cost was $27,983 in Canadian dollars. "Costs in the last six months of life among patients who died in hospital were more than double those for patients who did not," $38,279 vs. $15,905, the authors write.

"The substantial impact of location of death on costs can be illustrated as follows: reducing the number of hospital deaths by 10 percent in 2006 would have saved the health care system approximately $11 million (486 patients multiplied by mean cost savings of $22,374 per patient)."

"Increasing the availability of alternative venues of care, such as long-term care and home care, may be effective in further reducing hospitalizations and containing costs," they conclude.

 

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