The cost of caring for the most expensive patients to treat can be cut through a more focused approach to providing care. But it will take a shift in medical care strategy to realize gains across the Medicare patient population.

An analysis of data from a Medicare pilot program found that a patient-centered care model applied to high-use patients returned $1.82 on every dollar spent. Mercer performed the analysis, with results published in a white paper, "Integrated Patient-Centered Care Management in the Medicare Supplement Population," available on the consulting firm's website.

Mercer used data from a three-year pilot program (2009-12) that involved Medicare Supplement patients covered by UnitedHealthcare. In part, the report said the patient-centered care model "improved health outcomes, reduced care fragmentation and lowered costs for both Medicare and patients … By providing intensive case management to patients with complex care needs, the pilot achieved a Return on Investment of $1.82 per dollar invested, 81 percent of which directly benefits Medicare."

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Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.