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Hospital-Based Palliative Care Program Evaluated

J Oncol Pract; ePub 2017 Apr 18; Isenberg, et al

Use of a palliative care unit (PCU) resulted in cost savings compared with usual care in a study involving 153 cancer patient encounters (PEs).

Investigators estimated the number of quality-adjusted life years (QALYs) that a PCU could generate. They assessed the maximum costs at which the PCU would be considered cost effective, using willingness to pay threshold of $180,000/QALY. They looked at variable costs alone, contribution margin, and PCU cost savings vs usual care. Among the results:

  • Variable costs were ~$1 million, or ~$1,300/PE/day.
  • Contribution margin was ~$318,000, or ~$400/PE/day.
  • Savings vs usual care was nearly $354,000, or ~$450 savings/PE/day.
  • Based on published literature, the program could generate 3.11 QALYs from PEs and caregivers.
  • The maximum variable cost needed to be cost effective was nearly $560,000, meaning an additional $716/PE/day could be spent.

Citation:

Isenberg S, Lu C, McQuade J, et al. Economic evaluation of a hospital-based palliative care program. [Published online ahead of print April 18, 2017]. J Oncol Pract. doi:10.1200/JOP.2016.018036.