Does Interdisciplinary Care Team Care Management Demonstrate Cost Effectiveness

Abstract

Interdisciplinary care team care management programs hold great potential to improve quality, yet relatively little research has examined if these programs are cost effective. Using program and administrative claims data from a large health plan, this study evaluated an interdisciplinary care team (IDCT) care management program that utilized a data-driven algorithm to identify 400 high-risk enrollees out of 48,235 Medicare Advantage beneficiaries. Due to a lack of IDCT resources available to manage these members, 252 members were enrolled in the IDCT care management program, while the remaining 148 members were not enrolled and constituted the control group. Multivariable analyses found that quality improved, with a 56 percent reduction in inpatient admissions, and healthcare costs were reduced by $1,121.76 per member per month. Moreover, the healthcare cost reduction from the program generated enough savings to cover the program's cost and a return on investment of $1.9MM ($614.88 per member per month).