TABLE 9-7Calculation of Cost Savings to MGH Population Based on Savings Achieved Within the Eligible High-Risk Populationa

CharacteristicHigh-Risk Population, n (%)
Size, N = 15,230b2,619 (17.2)
Total costc$58,619,716 (58.3)
Various Savings Scenarios
Percentage Net Savingse,f,g Compared to Control GroupSavings on High-Risk Population (% of total population costsd)
3$1,758,591 (1.7)
4$2,344,789 (2.3)
5$2,930,986 (2.9)
6$3,517,183 (3.5)
7$4,103,380 (4.1)

Data based on preliminary reports generated after 2.5 years of a 3-year project.


Because of the way the population was selected, the exact size of the denominator is not known.


Assumes average cost across total population of $6,600 per year per patient.


Uses baseline year cost; costs varied over time.


Savings after costs has varied between 3.5 and 6.8 percent over the period for which we have data.


Because intervention was less costly than control at baseline, and thus potentially more managed, these savings projections may underestimate program savings in less managed populations.


Outlier trimming affected control group more than intervention group so these savings projections may underestimate actual savings.

From: 9, Care Culture and System Redesign

Cover of The Healthcare Imperative
The Healthcare Imperative: Lowering Costs and Improving Outcomes: Workshop Series Summary.
Institute of Medicine (US) Roundtable on Evidence-Based Medicine; Yong PL, Saunders RS, Olsen LA, editors.
Washington (DC): National Academies Press (US); 2010.
Copyright © 2010, National Academy of Sciences.

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