Supportive Housing Leads to Lower Health Care Costs

Health Affairs Tracks Expenditures

Supportive Housing Leads to Lower Health Care CostsHealth Affairs has published a study reporting that “Formerly Homeless People Had Lower Overall Health Care Expenditures After Moving Into Supportive Housing.”

Supportive Housing is now commonly recognized as effective public policy in ending homelessness, but a new study also finds that housing plays a role in health care reform.

Health care costs for the homeless reflect both their medical complexity and psychosocial risk factors. Supportive housing provides a stable home along with on-site integrated health services.

In this pilot study, a mixture of survey and administrative claims data evaluates outcomes for formerly homeless people who were living in a supportive housing facility in Oregon between 2010 and 2014. Results from the claims analysis showed significantly lower overall health care expenditures for the people after they moved into supportive housing.

Expenditure changes were driven primarily by reductions in emergency and inpatient care. Survey data suggest that the savings were not at the expense of quality. Respondents reported improved access to care, stronger primary care connections, and better subjective health outcomes.

These results indicate a potential association between supportive housing and reduced health care costs that warrants deeper consideration as part of ongoing health care reforms.

Click here to read the full study.