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Case Studies

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Minimize the high costs of care by preventing unnecessary ER visits

Minimize the high costs of care by preventing unnecessary ER visits

Minimize the high costs of care by preventing unnecessary ER visits

How predictive analytics transformed ER utilization and cost management

How predictive analytics transformed ER utilization and cost management

Enhance accuracy

2x visits with PCPs

$1.5K saved per visit

Improve health outcomes

The challenge

Identifying and redirecting avoidable ER visits

The high cost of maintenance and limited availability of Emergency Rooms (ER) facilities have become significant concerns for payers, governments, providers, and employers. In 2014, Americans made 136 million ER visits, according to the Centers for Disease Control and Prevention (CDC), and this number is expected to rise. However, the American Journal of Managed Care reports that over 30% of ER visits could have been avoided.

Avoidable ER visits result from a lack of coordinated medical attention, leading to higher care costs, longer wait times, and suboptimal health outcomes. Redirecting just 20% of ER visits to more affordable alternatives, such as urgent care or Primary Care Physicians (PCP), could save $4.4 billion, according to HealthAffairs.org.

A multi-billion-dollar healthcare payer aimed to identify members likely to make avoidable ER visits and guide them toward more cost-effective options.

Key challenges

  • High ER visit costs and limited facility availability

  • 30% of ER visits deemed avoidable

  • Lack of coordinated care leading to higher costs and poor outcomes

  • Need for efficient redirection to lower-cost alternatives

The solution

Redefining ER care management

Identifying factors

Identify avoidable ER visits

Generate 50+ hypotheses

Analyze ER visits causes

Targeted actions

Target 30% high-risk members

Implement alternative care

Prioritize provider actions

Implementation approach

1

Data sources

  • Use structured and unstructured data

  • Collect PCP and urgent care data

  • Analyze provider and member info

2

Data processing and analysis

  • Apply feature selection

  • Test data hypotheses

  • Use analytics for prediction

3

Model development

  • Create ER models

  • Focus on low-intensity cases

  • Target group for care interventions

The impact

Predicting and preventing avoidable ER visits

Key insights

  • Past ER visits raise risks

  • Multiple PCP visits double risk

  • Optimized ER use improves outcomes

Cost savings

  • $1,500 saved per visit

  • $10M potential annual savings

  • Target high-risk members 30% of ER visits deemed avoidable

Advanced analytics

  • ML and text-mining enhance accuracy

  • Improve prediction of rare events

  • Data insights optimize care

Looking ahead

Expand predictive models

  • Enhance prediction accuracy for broader healthcare scenarios

Focus on preventive care

  • Implement proactive measures to reduce avoidable visits

Improve member engagement

  • Develop personalized interventions for high-risk members