Person-Centered Care: The Business Case

Victor Tabbush
Alexis Coulourides Kogan
Laura Mosqueda
Gerald F. Kominski
June 2016

This resource provides a framework to assess the business case for PCC, focusing on both cost reduction and revenue increases for older adults with multiple chronic conditions and functional limitations. The report is also summarized in an issue brief.

  • PCC models of care are becoming more financially viable following policy changes to reward value in Medicare and the Affordable Care Act.
  • Key recommended elements of a PCC program include an assessment conducted in the person’s home and regular review of an individualized care plan.
  • Methods and steps in making the business case include deciding on a time frame, determining the costs of the intervention, and estimating the benefits of the intervention in costs avoided.
  • For four PCC programs discussed in the report, the return on investment (ROI) ranged from more than 90 percent to more than 500 percent.
  • For a fully integrated health system, a simulation estimates a ROI of more than 350 percent for a well-designed PCC program.
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