Can targeting high-risk patients reduce readmission rates? Evidence from Israel

Efrat Shadmi, Dan Zeltzer, Tzvi Shir, Natalie Flaks-Manov, Liran Einav and Ran D. Balicer

Journal of Applied Economics, 2020, vol. 23, issue 1, 729-745

Abstract: We study a large intervention intended to reduce hospital readmission rates in Israel. Since 2012, readmission risk was calculated for patients aged 65 and older, and high-risk patients were flagged to providers upon admission and after discharge. Analyzing 171,541 admissions during 2009–2016, we find that the intervention reduced 30-day readmission rates by 5.9% among patients aged 65–70 relative to patients aged 60–64, who were not targeted by the intervention and for whom no risk-scores were calculated. The largest reduction, 12.3%, was among high-risk patients, though some of it may reflect substitution of attention away from patients with unknown high-risk at the point of care. Post-discharge follow-up encounters were significantly expedited. Estimated effects declined after incentives to reduce readmission rates were discontinued. The evidence demonstrates that informing providers about patient risk in real-time coupled with incentives to reduce readmissions can improve care continuity and reduce hospital readmissions.

Date: 2020
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DOI: 10.1080/15140326.2020.1798194

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