In a policy briefing in the U.S. Capital the Robert Wood Johnson Foundation (RWJF) released results from a pilot study showing that Green House project homes save Medicare and Medicaid $1,300 to $2,300 per home resident annually compared to traditional nursing homes. The briefing will also release new consumer research showing that the Green House model is strongly preferred by family caregivers over traditional nursing homes.
This is major news for the long term care industry, particularly the for-profit sector, which has not been as quick to embrace culture change alternatives to institutional nursing homes, in part because person-centered models of care have been considered less profitable. It also comes on the heels of research demonstrating the financial feasibility of the Green House model (full disclosure: the model was created by ChangingAging’s Dr. Bill Thomas and we are of course big supporters). Not only does independent research show the model delivers significant improvements in care and satisfaction, it also finds adopters experience higher overall and private pay occupancy rates and increased revenues. Stay tuned for live updates to this post starting at 12:30 pm EST.
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12:45 PM EST
One of the speakers at the briefing, Alice Bonner, director of the Division of Nursing Homes in the Center for Medicare and Medicaid (CMS), said that CMS is committed to supporting innovative culture change models like the Green House Project that “empower elders, include them in decision making and provide real choice.”
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Key Findings:
The rate of hospitalization per Green House resident over 12 months was over seven percentage points higher in traditional nursing homes compared to Green House homes. This reduced annual Medicare hospitalization expenditures per resident in Green House homes. Overall Medicare and Medicaid savings ranged from $1,300 to $2,300 per resident annually.
Research conducted in 2012 found that residents received 22 percent more direct care time in Green House homes than in traditional nursing homes. Despite this increase, median operating costs of Green House homes are equal to traditional nursing homes.
About The Green House Project
As Americans age, they worry about finding a place to live happily and comfortably, that provides the care and services they need. Many nursing facilities can feel like hospitals instead of homes, but since 2002, the RWJF-funded Green House Project has pioneered a radically different approach to long-term care. Today, 264 homes are open or under development in 32 states. These Green House homes have been designed from the ground up to look and feel in every way like real homes. Research shows that elders are healthier and happier in Green House homes, which cost no more to operate than traditional nursing homes.
