A Cost Benefit Analysis of Individual Home Visiting Health Care

Jinhyun Kim; Taejin Lee; Jinhee Lee; Sangjin Shin; Eunhee Lee

doi:10.12799/jkachn.2010.21.3.362

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Original Article
A Cost Benefit Analysis of Individual Home Visiting Health Care: Jinhyun Kim, Taejin Lee, Jinhee Lee, Sangjin Shin, Eunhee Lee; Journal of Korean Academy of Community Health Nursing 2010;21(3):362-373.
DOI: https://doi.org/10.12799/jkachn.2010.21.3.362
Published online: April 4, 2014

¹Associate Professor, College of Nursing, The Research Institute of Nursing Science, Seoul National University, Korea.

²Associate Professor, Graduate School of Public Health, Seoul National University, Korea.

³Researcher, Health Insurance Review Agency, Korea.

⁴Researcher, National Evidence-based Healthcare Collaborating Agency, Korea.

⁵Doctoral Student, College of Nursing, Seoul National University, Korea.

• Received: August 2, 2010 • Revised: September 20, 2010 • Accepted: September 27, 2010

This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Abstract

Abstract

Purpose
The purpose of this study is to evaluate the costs and benefits of individual home visiting health care using secondary data and literature review.
Methods
The total number of subjects was 1,008,837. A specific program was classified into disease management, care of infant, child and women, or elderly care. The costs and effects of a program were identified from a societal perspective, and the effects were converted into monetary terms or benefits. The total cost was calculated in the way that medical expenses, travel costs and productivity losses were offset by the decrease in benefits and thus only the program budget was included in the total cost.
Results
The total program cost was 47.6 billion won per year and the total annual benefit was estimated at 435.6 billion won. The benefits of arthritis management were the biggest among disease management programs. The net benefit was 388.0 billion won per year and the benefit/cost ratio was 9.16.
Conclusion
Home visiting health care was validated to be economically effective. It made a positive contribution to improving the health status of vulnerable populations and reducing medical expenses. These results suggest that home visiting care should be extended more broadly to vulnerable populations.
Key Words: Home visit; Cost-benefit analysis

Figure 1

Framework.

Table 1

General Characteristics of Subject in Individual Home Visiting Health Care (N=1,008,837)

^†Multiple registration.

Table 2

Cost of the Individual Home Visiting Health Care in 2007

Table 3

Benefit of the Individual Home Visiting Health Care in 2007

SME=savings in medical expense; PC=prevention of complication; STC=savings in travel cost; SPL=savings in productivity loss; DM=diabetes mellitus; CD=cerebrovascular disease; UI=urinary incontinence.

^†50% reduction of admission days or outpatient days was assumed; ^‡It was assumed that the utilization rate of individual home visiting care is 25%.

Table 4

Cost-benefit Analysis and Sensitivity Analysis

^†This indicates the results of the individual home visiting health care program is provided for the patients with hypertension and diabetes mellitus.

This research was funded by Korea Institute for Health and Social Affairs in 2008.

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A Cost Benefit Analysis of Individual Home Visiting Health Care

Figure 1 Framework.

Figure 1

A Cost Benefit Analysis of Individual Home Visiting Health Care

Table 1 General Characteristics of Subject in Individual Home Visiting Health Care (N=1,008,837)

^†Multiple registration.

Table 2 Cost of the Individual Home Visiting Health Care in 2007

Table 3 Benefit of the Individual Home Visiting Health Care in 2007

SME=savings in medical expense; PC=prevention of complication; STC=savings in travel cost; SPL=savings in productivity loss; DM=diabetes mellitus; CD=cerebrovascular disease; UI=urinary incontinence.

^†50% reduction of admission days or outpatient days was assumed; ^‡It was assumed that the utilization rate of individual home visiting care is 25%.

Table 4 Cost-benefit Analysis and Sensitivity Analysis

^†This indicates the results of the individual home visiting health care program is provided for the patients with hypertension and diabetes mellitus.