Does disease management save money?

posted 10.05.05

A study from Cornell University and Thomson Medstat on the return on investment of disease management programs reveals mixed results for programs targeting depression, diabetes and asthma, but yields positive results for programs targeting congestive heart failure or multiple illnesses. Many businesses have adapted disease management programs into health plans to reap the cost-savings, but more research is needed, says lead author Ron Z. Goetzel, Ph.D., director of the Institute for Health and Productivity Studies at Cornell University and vice president of consulting and applied research at Thomson Medstat, a business solutions company.

“Overall, there has been little scientifically rigorous research conducted to determine the financial impact of disease management,” Goetzel said in a release by Thomson Medstat. “That’s a concern, because companies and government agencies have increasingly adopted DM to control the cost of care for individuals with chronic medical conditions — a minority of the population responsible for a majority of health care spending.”

The DM industry’s revenues jumped from $85 million in 1997 to more than $600 million in 2002. Typically, DM programs are designed to ensure patients follow specific, proven clinical care guidelines. Many offer counseling and education while promoting diet, exercise, stress reduction and smoking cessation.

The study was published in the summer 2005 edition of Health Care Financing. To read the study, go to www.cms.hhs.gov/HealthCareFinancingReview.