Patient-Centered Medical Home Initiative Produced Modest Economic Results For Veterans Health Administration, 2010–12

• DOI: 10.1377/hlthaff.2013.0893
• Publication Date: 2014-06-02T20:34:08Z
• Authors: Paul L. Hebert; Chuan-Fen Liu; Edwin S. Wong; Susan E. Hernandez; Adam Batten; Sophie Lo; Jaclyn M. Lemon; Douglas A. Conrad; David Grembowski; Karin Nelson; Stephan D. Fihn
• Keywords: Medical Home

In 2010 the Veterans Health Administration (VHA) began a nationwide initiative called Patient Aligned Care Teams (PACT) that reorganized care at all VHA primary clinics in accordance with patient-centered medical home model. We analyzed data for fiscal years 2003–12 to assess how trends health use and costs changed after implementation of PACT. found PACT was associated modest increases visits decreases both hospitalizations ambulatory care–sensitive conditions outpatient mental specialists. estimated these changes avoided $596 million costs, compared investment $774 million, potential net loss $178 study period. Although has not generated positive return, it is still maturing, are favorable. Adopting does appear have been major financial risk VHA.