To reduce ER costs, University of Illinois Hospital & Health System sponsors housing program for homeless

Chicago-based University of Illinois Hospital & Health Sciences System is testing a program to reduce emergency room costs associated with “frequent flier” patients who suffer high rates of chronic illness in addition to chronic homelessness, reports Crain’s Chicago Business.

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The Housing First program provides homeless people, even those who chronically abuse drugs and alcohol, with a free apartment in an effort to reduce their use of hospital emergency rooms. The program does not require participants to stay sober to in order to retain housing.

University of Illinois Hospital has donated $250,000 to support the Housing First program in Chicago. The funding could house about 20 people for a year.

Stephen Brown, director of preventive emergency medicine at University of Illinois Hospital said seven of the hospital’s top 10 recurring patients are chronically homeless. “They’ll access our ER anywhere between 30 and 120 times during the year,” Mr. Brown told Crain’s. And the costs add up.

Changes wrought under the Affordable Care Act are forcing hospitals to consider how social factors influence patient health, including housing. In reducing costly ER visits from uninsured patients and preventing unnecessary hospital admissions, hospitals will be able to pocket the savings at the end of the year.

“Housing is a social determinant of health — we all know that,” CEO of Chicago-based Health and Disability Advocates Barbara Otto told Crain’s. “What’s interesting about this is that there’s a hospital that is recognizing that, from an operational perspective, they can improve their bottom line.”

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