Validation Institute Confirms Over $2,200 per member per year savings from Ochsner Digital Medicine

Newswise — June 26, 2023 - New Orleans - Ochsner Digital Medicine has achieved Validation for Savings by the Validation Institute, an independent non-profit organization. The Institute confirmed in a new propensity-matched study that members of Ochsner Connected Health’s chronic disease management program have lower per member per month costs than similar non-participants.

"The Validation Institute has recognized what our clients and thousands of Ochsner Digital Medicine members know – this digital platform empowers members and saves money, which is achieved through managing their chronic conditions and working toward their health goals," said Dan Shields, vice president for corporate accounts with Ochsner Digital Medicine. "What differentiates our program is the care team approach of a health coach and licensed clinician assigned to each member. This allows our solution to address not only the necessary lifestyle changes, but also the ability to adjust medication appropriately to completely manage the member’s condition. The result is better outcomes than traditional care.”

Ochsner Digital Medicine helps members manage chronic conditions such as high blood pressure and Type 2 diabetes at home using a digital device, while staying connected to a dedicated care team. The digital devices send regular readings to their Digital Medicine team who adjust care as needed. All the Digital Medicine progress is recorded in a member’s medical record and made available to their doctor. The program is available in all 50 states to employers and insurers.

"Remote patient management is vital to future care models and is a shared interest of employers, payers, and value-based healthcare systems," says Denise Basow, MD, executive vice president and chief digital officer at Ochsner Health. "Ochsner was ahead of the curve in developing tools to remotely monitor patients with chronic diseases, but the digital health landscape has gotten crowded. It has become increasingly difficult to separate solutions making promises vs. those driving true financial outcomes. Earning a savings validation from an independent third party further proves Ochsner's clinical effectiveness in reducing claims and lowering the total cost of care.”

"We're gratified to confirm that Ochsner Digital Medicine achieves what it promises to employers and patients -- a reduced cost for patients who are struggling with the costly conditions for hypertension and diabetes," said Benny DiCecca, CEO, Validation Institute. 

Study Methodology

The study* reviewed by the Validation Institute compared costs for Ochsner Digital Medicine participants with a control group. 

Participants’ total medical costs for the first year of the program were compared to those of matched non-participants. Data came from their insurance claims.

Findings and Validation

• In the first year, the hypertension treatment group’s total costs (medical and pharmacy) were $204 per member per month lower than the control group’s costs. For the Medicare Advantage and MSSP groups, the difference was statistically significant.
• In the Type 2 diabetes group, a $163 per member per month savings was achieved.

With these findings, the Institute validated the Ochsner Digital Medicine chronic disease program savings achievement, confirming that the program reduces health care spending per case/participant. The Validation Institute is willing to provide up to a $25,000 guarantee as part of their Credibility Guarantee Program.

"Employers understand that hypertension and diabetes are costly conditions that greatly impact employee health and productivity," said Shields. "We can provide members that personalized, one-on-one support that helps them stay on track with medicine and reduces over-utilization such as unnecessary ER visits as well as hospital admissions and 30-day readmissions. We thank the Validation Institute for this endorsement of Ochsner Digital Medicine.”

About Ochsner Digital Medicine

Ochsner Health is an integrated healthcare system with a mission to Serve, Heal, Lead, Educate and Innovate. Celebrating more than 80 years of service, it leads nationally in cancer care, cardiology, neurosciences, liver and kidney transplants, and pediatrics, among other areas. Ochsner is consistently named both the top hospital and top children's hospital in Louisiana by U.S. News & World Report. Its cutting-edge Connected Health Digital Medicine program cares for patients beyond its walls by applying technology and data to create customized, patient-centered digital health solutions for chronic condition management. This program is a true clinical model that includes medication management by licensed clinicians. It enables members to improve their health and patient experience while reducing costs. Ochsner Digital Medicine is live in all 50 states, serving members, health plans, and employers nationally. Learn more at connectedhealth.ochsner.org

About Validation Institute

Validation Institute is an independent, objective, third party organization on a mission to improve the quality and cost of healthcare. Based in Woburn, MA the organization is made up of a network of health benefits purchasers, health benefits advisors, and healthcare solution providers focused on delivering better health value and stronger outcomes than conventional healthcare. www.validationinstitute.com

* Santa Barbara Actuaries Inc. (2021). Ochsner Digital Medicine Report