A report by New York’s Primary Care Coalition finds that a strong primary care system is vital to reducing the state’s healthcare costs.
“Primary Challenge: How New York Can Save Billions by Investing in Primary Care” explains that the state could save approximately $10 billion annually by reducing hospitalizations to the national average and reducing non-emergency ER use.
Those savings are only possible, the report indicates, by investing in a primary care sector that is accessible to all New Yorkers and organized to provide essential services in preventing and managing chronic illness.
“New York’s healthcare system is in a state of perpetual financial crisis,” said Linda Lambert, executive director of the American College of Physicians' New York chapter and a partner of the Primary Care Coalition. “This report does not just pinpoint many of the driving factors of our burdensome costs, it points the way to a solution – through a robust primary care system.”
She said federal healthcare reform provides important incentives, bit it’s time for New York to seize the opportunity to strengthen primary care and reduce its own financial healthcare burden.
Relying on national and statewide research, the report provides an overview of expenditures; discusses the impact of chronic disease, avoidable hospitalization and emergency department use, primary care and the patient centered medical home; and offers recommendations.
According to the report, New York:
- Spends an estimated $100 billion to $110 billion of its $160 billion healthcare bill each year on chronic diseases like diabetes, heart disease and asthma.
- Has more than 5 million people in communities without ready access to primary care.
- Ranks third lowest in the nation in Medicaid fees paid to primary care physicians.
- Ranks 2nd highest in the nation in avoidable hospital use and cost and 5th highest in the number of days patients spend in the hospital – 50 percent higher than the national average.
- Spends about $1 billion per year on non-emergency ER visits.
The report says the patient-centered medical home model could achieve better health outcomes and reduce costs in the state.
“The patient centered medical home model works to improve outcomes and hold down healthcare spending,” said Richard N. Gottfried, chairman of the NYS Assembly Health Committee. “Our medical home bill and the coalition’s recommendations will provide basic tools and leadership to bring healthcare providers, health plans and the state government together to make it happen. The federal healthcare reform bill has several key provisions we can take advantage of in New York to strengthen primary care.”
Federal healthcare reform is expected to contain provisions to assist New York in reforming its healthcare system, including funding for health centers, support for medical homes and other innovative care models and increased payments and training for primary care providers.