Post by John Craine on Jul 23, 2015 10:21:31 GMT -5
A Centering practice site applying for grant funding needed to explain to their funder how cost savings from Centering are estimated in CenteringCounts.
The calculation is very straight forward. For the preterm birth savings it is:
(Baseline PTB rate x number of Centering patients) - (Actual Centering PTB rate x number of Centering patients) x cost of care = cost savings from Centering
The baseline PTB rate in this formula is determined by you and entered into Tab B:Goals in CenteringCounts. Typically, your baseline should be the standard PTB rate you want to use for comparison. You might use the prevailing PTB rate within your zip code or service area, county or state. As the geographic jurisdiction broadens, PTB rates tend to regress toward the mean. For example, you may be in a zip code where PTB rates are 18% so if you use the state PTB rate of 11% as your baseline and your Centering groups are delivering at 10%, you are significantly underestimating your savings.
The costs of care are embedded in CenteringCounts and are taken from the 2006 study cited below:
Behrman and Butler, 2006. Preterm Birth: Causes, Consequences, and Prevention, July 13, 2006. Institute of Medicine. Researchers calculated an average of $33,200 spent in infant medical care costs per preterm birth (above and beyond what would have been expended had these infants been born at term). Including maternal delivery costs, early intervention services, and special education services associated with a higher prevalence of four disabling conditions among premature infants, as well as lost household and labor market productivity associated with those disabilities, the total cost per preterm infant increased to $37,152 in direct medical costs and $51,600 cost total. These cost estimates are considered conservative.
The calculation is very straight forward. For the preterm birth savings it is:
(Baseline PTB rate x number of Centering patients) - (Actual Centering PTB rate x number of Centering patients) x cost of care = cost savings from Centering
The baseline PTB rate in this formula is determined by you and entered into Tab B:Goals in CenteringCounts. Typically, your baseline should be the standard PTB rate you want to use for comparison. You might use the prevailing PTB rate within your zip code or service area, county or state. As the geographic jurisdiction broadens, PTB rates tend to regress toward the mean. For example, you may be in a zip code where PTB rates are 18% so if you use the state PTB rate of 11% as your baseline and your Centering groups are delivering at 10%, you are significantly underestimating your savings.
The costs of care are embedded in CenteringCounts and are taken from the 2006 study cited below:
Behrman and Butler, 2006. Preterm Birth: Causes, Consequences, and Prevention, July 13, 2006. Institute of Medicine. Researchers calculated an average of $33,200 spent in infant medical care costs per preterm birth (above and beyond what would have been expended had these infants been born at term). Including maternal delivery costs, early intervention services, and special education services associated with a higher prevalence of four disabling conditions among premature infants, as well as lost household and labor market productivity associated with those disabilities, the total cost per preterm infant increased to $37,152 in direct medical costs and $51,600 cost total. These cost estimates are considered conservative.
