“A growing body of evidence points to the important role of the social determinants of health — the conditions, forces and systems that influence daily lives and environments — in shaping population health outcomes,” wrote Bill J. Wright, PhD, lead author of the study. “Stable housing is one of the most important of these determinants that health reform may need to address.”
To estimate the effect supportive housing has on healthcare expenditures, Dr. Wright and his colleagues analyzed surveys and Medicaid claims data of formerly homeless people who were living in a supportive housing facility in Oregon between 2010 and 2014.
The study found the average Medicaid-covered participants who were homeless or lacked housing stability cost $1,626 per month in insurance coverage, which is most than three times higher than the average $454 monthly expenditures of other adult Medicaid beneficiaries. One year after moving into a supportive housing facility, the per member monthly coverage costs dropped from $1,626 to $899, representing an $8,724 reduction in costs per person over the year.
Healthcare expenditures in the second year after the move-in date equaled roughly $995 per month — still considerably lower than the costs in the period before the move to supportive housing. The claims data suggest changes in expenditures were driven primarily by reductions in emergency and inpatient care.
Additionally, study participants who responded to the researchers’ survey reported improved access to care, stronger primary care connections and better subjective health outcomes after moving into a housing facility.
“Together, these results indicate a potential association between supportive housing and reduced healthcare costs that warrants deeper consideration as part of ongoing healthcare reforms,” concluded the study authors.
More articles on homelessness and population health:
Homelessness crisis doesn’t sit well with Valley View Hospital CMO Dr. Alan Saliman
UnitedHealthcare in Texas invests in housing to lower healthcare costs
LA County invests in housing for homeless to curb healthcare costs
