Value For Money
What is Value for Money?
The South West LHIN has set out to determine whether good value has been achieved for the money invested in the local health system and is a key area of focus for the South West LHIN Board of Directors.
Value for Money (VFM) is the optimal use of resources (funding, staffing, and costs) to achieve desired outcomes. It does not mean doing the least expensive things, but rather it means having a better understanding of what is driving costs and ensuring the desired quality outcomes are achieved.
Our first VFM Assessment reviewed the Home First program in Elgin County and our second VFM Assessment on the Access to Care program was presented at the May 2016 Board of Directors meeting, included an expanded focus on assisted living, supportive housing, adult day programs, complex continuing care, and rehabilitation programs.
The South West LHIN found that value for money was achieved in Access to Care and the program represents good potential for long-term cost avoidance if the reduction in Alternate Level of Care (ALC) days can be maintained over time. The program helped create additional capacity in hospitals and after factoring in additional community support costs, helped save approximately $14.8 million.
The outcome of this initial Assessment on Home First implementation in Elgin County indicated that VFM was achieved and without this intervention, patients waiting for discharge to long-term care and other service levels would have stayed in hospital longer than required, creating approximately 10,243 additional ALC days. The reduction in days as well as the reduction in ALC Rate for all inpatient, acute, and post-acute individuals further supports improved capacity and patient flow. Based on Assessment assumptions, supporting these patients in the community resulted in an approximate savings $7.6 million.