Study suggests home care answer in cutting costs

A nationwide increase in the use of home health care can save the U.S. billions of dollars in hospital costs, according to the results of a new study conducted by Frank Lichtenberg, the Courtney C. Brown Professor of Business at the Columbia University Graduate School of Business and a Research Associate with the National Bureau of Economic Research.

Professor Lichtenberg estimates the nation may have saved as much as $25 billion in total hospital payroll costs in 2008 alone thanks to the growth of the home health care sector during the previous 10 years. He pointed out that "it is a reasonable calculation" that further savings will be realized in the years ahead if the use of home care continues to grow.

Funding for the study was provided by Home Instead, Inc., an American-based international franchisor with more than 60,000 trained CAREGivers(SM).