Economic Effects of Occupational Therapy Services for Adults in Acute and Subacute Care Settings

Read Full Text: Economic Effects of Occupational Therapy Services for Adults in Acute and Subacute Care Settings: A Systematic Review (This is a paid article, but we still thought it was important to cover.)
Journal: The American Journal of Occupational Therapy
Year Published: 2022
CEU Podcast: The Value of Acute and Postacute OT with Jeffrey Kou (CE Course)

I’ve always believed that one of the main selling points of occupational therapy is its cost-effectiveness.

But, this week’s research really made me think through the complexities of that statement—for the acute and subacute settings, at least.

Yes, there is a growing amount of research on the economic value of OT—and the initial findings are promising.

The problem is that the existing research is widely varied, and there simply is not enough of it. Luckily, this article provides a great introduction to the topic, and it may add some nuance to the way you think about the value of your OT offerings.

Personally, I’m going to revise my pitch to say OT can be cost effective :slight_smile:

Let’s dive in.

Intro to OT in acute and subacute settings

This article begins with a helpful overview of OT in acute and subacute settings. The authors state that current research supports the clinical efficacy of OT in these settings to improve functional outcomes.

They point to these papers to back up that statement:

However, just because care is deemed clinically effective does NOT necessarily mean it is cost effective. To understand the cost-effectiveness of OT, we need to answer the following questions:

  • Are the functional gains even worth the cost and effort?
  • Is there a cheaper/easier way to obtain these same gains?

What do we already know about the economic value of OT?

The authors state that evidence supporting the economic value of OT is emerging.

Previous reviews have illustrated the cost-effectiveness of:

But even though OT is widely considered an integral part of acute and post acute care, no synthesis of cost-effectiveness has been performed for these settings.

Which leads us to this paper…

What was the purpose of this paper?

The intent of this paper was to identify, describe, critique, and synthesize the published economic evaluations of OT for adults in acute and subacute care.

What were the methods?

The authors embarked on a systematic review to find research that:

  1. Focused on OT for adults in the acute and subacute settings.
  2. Provided a cost analysis.

To be included in this review, the research had to draw a comparison between OT and another intervention—like standard or usual care.

Data was extracted from the studies using the Joanna Briggs Institute Data Extraction Form for Economic Evaluation.

What were the results?

This review included 10 articles. Due to the heterogeneity of the results, the authors were unable to draw overarching conclusions about the economic value of OT services.

But, they did group the articles into 4 categories that are helpful when considering the cost-effectiveness of OT in various applications. I’ve done my own coding of this, giving the categories a red, yellow, or green light to visually represent the cost effectiveness associated with each:

:red_circle: Higher Cost and Lower Benefit
:yellow_circle: Lower Cost and Lower Benefit (no studies were in this category)
:yellow_circle: Higher Cost and Higher Benefit
:green_circle: Lower Cost and Higher Benefit

Here are the 10 studies, grouped by population and coded by cost-effectiveness:

Acute care

:green_circle: A 1998 study explored a discharge planning service that included a home visit from the OT. The cost of the service was $18,286, but it saved an estimated $519,780 by reducing readmission and bed days.

Older adults

:yellow_circle: A 2013 study showed that a falls education program saved about $451 per number of people with falls prevented.

:yellow_circle: A 2018 study investigated a discharge planning program with pre- and post-discharge home visits. The cost of the program was higher than that of the in-hospital consultation. However, compared to patients who underwent the in-hospital consultation, a higher proportion of patients in the home visit program showed improvement in activities of daily living, with a cost-effectiveness ratio of $61,906 per person who showed clinically meaningful improvement.

Post-stroke

:green_circle: A 2017 article examined the use of the Aid for Decision-Making in Occupational Choice to identify meaningful occupations (and subsequently choose occupation-focused interventions). The chosen intervention was less expensive and more effective than usual care.

:green_circle: A 2019 study compared conventional treatment only to conventional treatment and 20 minutes of virtual reality (VR) rehab. The addition of VR rehab reduced overall costs and improved outcomes.

:yellow_circle: A 2014 study found that home visits pre-discharge were more expensive—but more effective—compared to hospital-based interviews.

:red_circle: A 2003 study found that an interdisciplinary NDT-based stroke rehab program provided no additional benefit and was more costly than standard care.

Subacute care

:green_circle: A 2008 study investigated the effect of pre- and post-op OT and PT for clients undergoing hip replacement. Compared to usual care, the intervention was less expensive and provided a greater benefit.

:green_circle: A 2019 study looked at a program where patients with TBI received structured ADL training during post-traumatic amnesia. Compared to the usual treatment, this program was less expensive ($42,863 versus $49,278) and more effective.

:yellow_circle: Another 2019 study took place in an inpatient rehab setting where clients received rehab services in which the challenge and skill level were adjusted to ensure the activities met the clients’ needs. Compared to the usual treatment, outcomes were better—but the cost was higher.

Conclusions and discussion

Overall, 5 interventions were found to deliver a higher benefit at a lower cost than the control:

  1. A discharge planning service that included a home visit from the OT
  2. Occupation-focused interventions post-stroke
  3. Conventional treatment with an additional 20 minutes of virtual reality rehab post-stroke
  4. Pre- and post-op OT and PT for clients undergoing hip replacement
  5. A program where patients with TBI received structured ADL training during post-traumatic amnesia

While these specific interventions showed promising results, it was difficult for the authors to draw any definitive, broadly-applicable conclusions about the cost-effectiveness of OT.

The authors contend that there has not been much professional discussion on the best way to measure the economic value of OT. They believe that because the clinical benefit of OT is often tied to the patient’s return to meaningful activity, we should seek to understand the cost of being limited in those activities—and subsequently, the related benefit of OT.

Implications for OT practitioners

This study showed that OT in acute and subacute care *can be” cost effective.

But, further research is needed. In the meantime, OTs should carefully document their costs and outcomes at an individual level.

Takeaways for OT practitioners

(Please note: These are my personal takeaways. They are not mentioned specifically in the article.)

1.) Talking in terms of money gives us a shared language—and we don’t do it enough!

Part of being client-centered means speaking a shared language with our clients. And honestly, money is probably the most universal language.

If we really want to connect with our teams and our clients, we need to get better at talking about the cost and benefits of what we offer. I’m very curious to hear what others think about this. Are you talking openly about the cost and benefits of your services?

2.) Every OT should understand the basic economics of their individual practice.

In every setting I worked in, one of the most empowering things I did was to learn and understand the policies that dictated:

  1. OT delivery
  2. The related payment mechanisms for OT

When you understand these two forces, you can harness them to provide the best care possible in your setting. I’m also curious to hear if you all feel the same way about this. Do you believe you have a solid grasp on your setting’s payment models and policies?

Here’s the full APA citation for this article:
Wales, K., Lang, D., Rahja, M., Somerville, L., Laver, K., &; Lannin, N. A. (2022). Economic effects of occupational therapy services for adults in acute and Subacute Care Settings: A systematic review. The American Journal of Occupational Therapy, 76(1).

Earn one hour of continuing education by listening to the podcast on this article!!

In this podcast episode, we dive even deeper into this topic, with OT (and Club member!), Jeffrey Kou. You may be eligible for continuing education credit for listening to this podcast. Please read our course page for more details!

What questions/thoughts does this article raise for you?

I really appreciate the reminder that it’s beneficial (for insurance/payer purposes) to highlight how OT services are preventing future healthcare costs for the patient. Money is usually the last thing from my mind when recommending services, but it shouldn’t be. In the eyes of the insurance company it’s (let’s be honest) the most pressing thing…and if the patient will save $ down the line by addressing something now, then that’s in their benefit too. Thanks for getting me thinking about the financial pros/cons and when to document on them.

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I am happy to see a new article on this topic and the use of the traffic light system with the evidence of cost-effectiveness. I hope some studies come out on the cost-effectiveness of Pediatric OT services although I know this can be trickier since it may be longer term.

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Great article! I am actually shocked there isn’t more research done on this topic.

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Thank for this article, I am challenged to learn more about policy in regards OT service delivery in my country.

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As someone in academics (PhD student), I’m not actively practicing so don’t have anything substantial to contribute to my own setting’s payment models and policies. That being said, I completely agree with the sentiment that “every OT should understand the basic economics of their individual practice”. I’m actively involved with educating and training some of the next generation of practitioners and it makes me think about how this information is modeled and provided to those students:

  • How is ACOTE-approved curriculum discussing the economics of practice? If students are being trained as “generalists”, where would they learn about the economics of their specific settings? Fieldwork? And if fieldwork is the way to learn more of these specifics, are FWE trained to deliver this information? Do they know the information themselves?

  • Once new OTs are in practice, where can they learn about this information? From Directors of Practice or other setting admins? What about in-services on the topic? Opportunities for continuing education from the setting and/or AOTA?

I think this is SUCH important information that we need to talk about more as OTs. The discussion, I think, has to begin in OT education, continue throughout practice, and then, hopefully, will we have the opportunity to be involved in policy/legislation to support the cost-effectiveness of OT services long-term.

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I’m glad you said this, @jenna6, because I think it is indicative of how most clinicians think! Honestly, ensuring our interventions are clinically effective can take our full clinical reasoning, it is hard to layer cost-effectiveness on top of it!

But, I think therapy services are going to change so much over our lifetimes, and if we can train ourselves to think in terms of costs, I think the changes will make more sense to us! (And, we might see the changes coming! I know I worked for a payment model that was cleary NOT cost effective for patients, and now that model no longer exists!)

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Awww! So good to see you in here @Perpetua! I hope that Kenya can learn from some of our failed payment models here in the US and skip ahead to value-based care services!

It seems like information like this needs to be learned in FW setting- because payment models are so setting specific! Several years ago I had developed a fieldwork manual that I’m pretty sure had a section on payment models. This discussion makes me want to revive that project someday- or pass it on to someone else!

This sounds awesome - definitely think you need to revive the project. Sounds like an AWESOME capstone project for an OTD student, too …

I found my FW forms from my Level 2s and don’t see anything on there directly related to payment models… @ACOTE:wink:

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https://club.otpotential.com/t/download-your-ot-fieldwork-manual/165

Ha! I forgot you can actually download it for free in the Club! I had payment models as a journal/reflection question!

Great call on an OTD student project, @allison5! If a student sees this- please consider this project!!

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I think considering reduction in burden of care once discharged from OT to home is a hidden cost saver. Returning patients home at a more independent level means caregivers can return to their jobs , not miss work to provide care . The statistics on caregiving and the financial and emotional toll is alarming. As OT’s we are invaluable in reducing caregiver burden and the financial burdens it entails .

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This a great topic I am challenged to dig deeper into this area of our practice thanks for posting

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Thanks Sarah, we hope to learn and push for the right kinds of policies that will facilitate value-based care services.

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I am so happy to be here… and I am so excited to read the articles… Thank you for accepting my request to join you♥️

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“Money is usually the last thing from my mind when recommending services, but it shouldn’t be”. Full disclosure, I am from another country (Canada), where my services are paid for by the government, and the financial impact of my services is often on my mind. My professional organization has compiled stuides to show the cost effectiveness of OT. I think, to thrive as a profession, we need to show that we are highly trained skilled individuals, who present a service that is unique, and cost effective as well! Showing value for our services should become second nature.

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YES! I am seeing this at the perfect time, because I am working on an acute care guide and am going to add some basic information about the cost of burden of care. Such a great point!

Something I didn’t like about this article, was in the last sentences of discussion the authors said that we should be seeking to capture costs from a wide range of a person’s activity and participation. I totally disagree! I think we need to focus on studying the reduction of the most obvious/straightforward costs that matter to our patients and the healthcare system:

  • reducing falls
  • reducing readmissions
  • reducing days in the hospital
  • reducing future burden of care

Once we get data on the benefit of OT related to these items, then we can expand our research!

I’m so glad to hear from an OT who works in a single payer system! Honestly, your comment probably sums up why our costs are so high here in the US and our outcomes lag. Our payment systems are SO CONFUSING that it limits an individual practioners abilitiy to peform a basic cost analysis of their services.

That being said, one trick I used when working was just to learn the AVERAGE cost of things then check myself on a regular basis, with quesitons like:

“Was that treatment session worth $75 for the patient?”

Wow! I just saw this headline after I made my last comment. Price transparency is something that is going to change DRASTICALLY in our lifetimes:

@clarice1 We’ll have to talk about this sometime!

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