The Hospital-at-Home paradigm: A game changer for profitability? 

It’s no secret that hospitals have long faced financial hurdles, which only became more difficult during the pandemic. Why are our hospitals riding the financial struggle-bus? When you couple high operating costs and uncompensated care/uninsured patients with varying reimbursement rates from insurance companies and government payers that may not always cover the actual cost of care, budget deficits are constant threat.

“Hospital-at-Home” is a transformative approach that has the potential to not only improve patient well-being, but also address the perennial challenge of hospital fiscal health.

How might Hospital-at-Home shift profits? Traditional facilities require substantial investments in infrastructure and maintenance. Hospital-at-Home can drive costs down primarily by lowering operating costs associated with a brick-and-mortar hospital. When eligible patients are treated at home, sought-after beds in overwhelmed hospitals are made available for those in need of more intensive care, allowing for a larger number of patients to be treated. More capacity equals the ability to treat more patients and bring in associated revenue without new infrastructure investments.

How might Hospital-at-Home impact patients? Close your eyes and picture any hospital room you’ve spent time in as a patient or visitor. Recall the cold temperature, fluorescent lights, and clinical smell. Now picture your favorite room in your house. I think most of us would choose our favorite room, if possible. Hospital-at-Home also allows patients better chances to avoid hospital-acquired infections and complications, and our families wouldn’t be limited to hospital visitation. Check out George Hardy’s Hospital-at-Home experience in Boston.

Although parts of Europe have utilized Hospital-at-Home for years, adoption in the US has been slow. As with many innovations, facilities can be reluctant to invest in a new model without the promise of payer coverage. Regardless, the concept of Hospital-at-Home care holds immense promise for the healthcare industry. By addressing some of the fundamental challenges that hospitals face in balancing revenues and expenses, this innovative approach can reshape the way we deliver care while improving patient outcomes and satisfaction.