•New report says hospital care in the home could save up to $1 billion in healthcare costs in 2030
• Report also finds that $6.4 billion could be saved in capital expenditure between now and 2030
• Around 350,000 patients who would otherwise be admitted to a traditional hospital could receive hospital care in their home in 2030
Medibank is calling for a significant expansion of hospital care in the home across the nation to alleviate pressure on the hospital system.
A new KPMG report commissioned by Medibank examines the potential economic benefits of expanding hospital care in the home in Australia by 2030, with up to 30% of conditions potentially able to be treated at home.
Home hospital models replicate the level of care provided in traditional ‘bricks and mortar’ hospitals, providing acute care to patients in their own homes using a combination of technological interventions and direct face-to-face care by doctors, nurses and allied health practitioners.
The report suggests broader adoption could deliver the following benefits to Australia’s health system in 2030:
• Substitute up to 1.2 million physical bed days
• Save up to $1 billion in healthcare costs
• Save up to $6.4 billion in capital expenditure on new physical hospital infrastructure
The economic case for home hospital models adds to growing evidence of other benefits including quality of care in line with or better than traditional hospitals, a low risk of hospital acquired complications and high patient satisfaction. These models also support greater equity of access between metropolitan and regional or rural areas.
Medibank CEO David Koczkar welcomed the report, which responds to calls from patients for more ‘in home’ care and comes as the health company calls for a system-wide shift to support the sustainability of the health system.
“Australia is currently over reliant on traditional inpatient care settings at the expense of access and choice for patients. There is a health transition underway and we are trailing behind many other countries when it comes to the uptake of more fit-for purpose and economically sustainable models of care,” Mr Koczkar said.
“Bricks and mortar hospitals will always play an important role in the health system, but expensive acute hospitals should not be the only option. We know patients want the option to be treated in the comfort of their own home and it frees up precious beds for those that really need it. Care decisions between a patient and their doctor should be driven by choice, rather than the lack of it.”
Consulting economist to KPMG Dr Craig Emerson said the report suggests the impact of home hospitals could be transformative for the health sector.
“Public hospitals are currently grappling with ambulance ramping, bed block and an overstretched health workforce. These challenges will only compound in the future, with health the area of government spending set to increase the most over the next 40 years,” Dr Emerson said.
“By 2030 350,000 patients could be treated in the home instead of a traditional hospital bed. We need to make changes now to future proof our healthcare system, hospital beds in the home play an important part.”
The report states that Australia has been slow to adopt these models of care, pointing to limited examples such as The Alfred (Victoria), rpavirtual (New South Wales) and My Home Hospital (South Australia). The report includes a deep dive analysis of the My Home Hospital service, which is delivered through a joint venture between Medibank’s Amplar Health and Calvary Health Care on behalf of SA Health.
More than 15,000 public patients from Adelaide and surrounding areas have used the My Home Hospital service since it started in 2021, saving more than 69,000 physical hospital beds in the process. The community has embraced the service, with admissions growing and patient satisfaction sitting at around 98%.
Seventy-four-year-old Adelaide resident Leonard Nicholls recently used the My Home Hospital service after being initially admitted to his local public hospital with pneumonia.
“After speaking with my doctor, we agreed that I could safely continue my treatment at home. I felt supported, with nurse Elijah visiting every day. I was also in contact with my doctor by phone and video calls using the iPad provided by the service.
“It was all very easy, and I appreciated being able to stay at home with my wife Barbara and dog Chloe, sleeping in my own bed, using my own bathroom, and eating my own food,” he said.
About home hospitals
A home hospital is a medically-led and virtually coordinated alternative to in-patient hospital care which provides continuous, comprehensive, multi-speciality hospital-level acute care to patients in their homes using an integration between technological interventions and direct face to face care.
Assessment: Patients are assessed by a paramedic, GP, or hospital doctor to determine their suitability for treatment in a home hospital.
Acute care: Home hospitals offer high-level acute care including mobile X-rays, ultrasounds, IV antibiotics, medication administration, blood tests, and oxygen therapy to name a few. Patients receive care from a team of clinicians who provide around-the-clock support through a combination of telehealth, nursing, and specialist visits. Care is supported by technology integration through wearable technology, virtual ward rounds and remote monitoring.
Conditions: Conditions appropriate for treatment though a home hospital include acute respiratory illness, cardiac failure, severe skin conditions, blood clots, septic conditions, and pre/post-operative care.