Cost Analysis of Chronic Disease Self Management Programs Being Delivered in South Florida

Background: Chronic disease is responsible for the majority of healthcare spending in the United States. South Florida residents have the highest per enrollee Medicare expenditures in the country. Programs that effectively promote the self management of chronic diseases have the potential to reduce the financial burden of the diseases.

Objective: To measure the costs of delivering Chronic Disease Self Management Program (CDSMP) in order to determine whether CDSMP has the potential to produce a net cost savings among elderly residents of South Florida.

Methods: Four agencies participating in the delivery of CDSMP workshops were surveyed to obtain data related to program costs. Cost information included both initial implementation and ongoing workshop delivery costs. Cost information was then combined with monetary benefits documented in the chronic disease management literature. Questionnaires were e-mailed to program coordinators from agencies participating in the delivery of CDSMP workshops. Questionnaires were returned via e-mail.

Results: Average costs for implementation per program completer were $288. These average costs are below the $1,381 healthcare cost reductions documented in the literature during the first year following completion of the program.

Conclusions: The cost measurements combined with information from the literature on potential cost savings attributable to CDSMP suggest that CDSMP may be effective in reducing healthcare costs among elderly residents of South Florida. These cost savings suggest that Medicare should consider sponsoring the implementation of these programs since the associated cost savings will accrue mainly to insurers.