Working with a top actuarial firm, Salvo Health used claims data from over nine million patients to analyze costs and potential savings for our care model.
In our recent blog post, we published a treatment and control study showing that Salvo Health’s program decreased healthcare utilization for our treatment population, including a 79% reduction in GI-related ER utilization. This is not only a great outcome for our patients, but it yields cost savings for both individuals and the health systems. Payers haven’t focused on functional disorders, like IBS, and other mid-acuity conditions because they assume they have low utilization and spend. So, we wanted to dig in further. Working with a top actuarial firm, we used claims data from over nine million patients to analyze costs and potential savings for Salvo’s care model and the results were promising!
Based on a 2023 Milliman study1, the average person in the US costs $7,7221 annually to the healthcare system. This number doubles for people living with IBS - averaging $14,206 annually. With between 10-15% of the US population affected by IBS2, the annual total cost of care for this patient population is considerable. IBD costs per patient average up to six times more than the US annual average at approximately $41,782. While only 1% of the US population3 lives with IBD, the costs are also significant.
According to the analysis, Salvo Health’s program showed a potential 3:1 ROI for commercial IBS patients - this means for every dollar spent on our program, you get three dollars back in savings annually. This number increases to $3.50 for IBS Medicare patients. For IBD, Salvo’s program showed over a 6:1 ROI for commercial patients and a 4:1 ROI for Medicare patients. Our study focused on claims groups typical of IBS or IBD diagnoses, such as emergency room visits, radiology and pathology, pharmacy and prescriptions, and specialty visits.
Given the large patient population, 10-15% of adults living with IBS, and nearly 2x spend, there is a missed opportunity to focus on high-value care offerings in this space. This data, along with our recent study showing reductions in ER utilization for our IBS patients, continues to define the potential of tech-enabled value-based care. While CMS, payers, and health systems are looking at what is next in their value-based care initiatives to cut the cost curve, it is crucial to remember that functional GI disorders and similar mid-acuity conditions have a major impact on spend, given the high incidence of conditions with persistent symptoms.
Finding technology solutions to scale high-value offerings for specialty care is imperative, so we are starting with GI care.
For more information about how you can become a Salvo Health partner, contact Amanda Sussex at email@example.com.