Medical home model saves N.C. nearly $1B

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The North Carolina Department of Health and Human Services (DHHS) has reportedly saved $984 million through fiscal years 2007 and 2010 by enrolling 1.1 million of the state’s Medicaid beneficiaries in medical homes, according to an analysis commissioned by the state legislature.

Milliman, the San Diego-based actuarial firm that conducted the analysis, determined that North Carolina saved $103 million in 2007, $204 million in 2008, $295 million in 2009 and $382 million in 2010.

"The key to the success of medical homes approach is a strong emphasis on preventative care, and aggressive care management," according to a statement from the Office of the Governor of North Carolina. "Although the cost of frequent office visits and treatment of newly diagnosed conditions adds to program costs initially, the reduction of emergency room visits and hospital admissions, as well as capturing of efficiencies and improving quality of care, results in significant savings and better health for the recipient."

According to the Dec. 21, 2011 statement, the North Carolina DHHS partnered with Community Care of North Carolina, which operates 14 regional healthcare networks, to enroll Medicaid beneficiaries in medical homes.