Skip to main content

Linking financial strain to medical and social need

The most immediate point of intersection between hospitals and consumer financial risk is the inability of patients to pay their medical bills. This is changing as the role of hospitals in meeting social determinants of health (SDOH) expands. Low incomes and poor health outcomes are linked across multiple conditions and stages of life.

The short- and long-term risks of financial security are amplified for providers and patients, given just how close so many in the U.S. are to economic shocks they cannot cover or rebound from:

  • A Federal Reserve survey found that 36% of adults could not pay cash to cover a $400 emergency expense; even those who could cover the expense might tap savings or a credit card to meet the immediate need (2020).
  • Race-related outcomes are worse: nearly 40% of employed Black or Hispanic adults in the same survey reported that a $400 emergency expense would make it harder to pay other bills, compared to 18% of employed white adults.
  • This can create a snowball effect, what Health Affairs calls a “crowding out . . . on other important financial obligations such as rent, food, energy and medical debt” (2022).

A person in these circumstances may find themselves not only ill but in need of social services for the first time. Hospitals can help make the connection through data and analytics that link SDOH risk, medical need and community resources.

Finance: Definition, dimensions and risk

As highlighted in a previous blog, finance is one of six SDOH categories that DataGen uses to help hospitals measure social risk: a measure of the non-clinical vulnerabilities that affect individuals and the community. The SDOH categories, including food, housing, transportation, digital competency, and health literacy, can be used discretely or collectively to assess risk, design and deploy interventions, and quantify their impact on the people who need them most.

DataGen’s financial SDOH data is licensed through Socially Determined ­and includes three dimensions: Strength, Resources and Resiliency. Each category contains drivers that help hospitals calculate social risk (none to high) and prioritize need. Individual risk drivers include financial assets and liabilities, while community risk drivers capture macro income and cost of living. Opportunities are drivers at both levels.

To link SDOH investment, resource planning and ROI, hospitals have access to nearly 70 data elements that DataGen uses to identify and calculate risk, scoped into ZIP Code or out to larger disadvantaged areas.

Financial strain, disease and social services

The Milbank Quarterly has highlighted income as key to the “fundamental cause theory of disease” and names social services as one of four ways to address “income-related health inequities.”

Hospitals are under increased pressure to offer market solutions here, but how? One example is a health system that uses social risk data and healthcare analytics to identify its most disadvantaged market. They then partner at no cost with a national non-profit to open multiple counseling centers within that footprint — addressing needs in a targeted, collaborative way.

Through such centers, other SDOH needs are revealed via an analytics-forward approach that is sustainable and long-term. And this is just what patients and providers need: the ability to avoid risk, minimize adverse consequences and improve outcomes across a variety of circumstances.

Labels:

Comments

Post a Comment

Popular posts from this blog

Five key components of a strong patient safety culture

In today’s healthcare environment, ensuring patient safety is more than just a priority — it’s a fundamental component of quality care. Establishing a strong patient safety culture within hospitals and health organizations can dramatically reduce errors, increase patient satisfaction and improve overall healthcare outcomes. But what exactly is a patient safety culture, and how can institutions cultivate it effectively?  This blog post explores the five key components that make up a robust patient safety culture, along with insights from the Agency for Healthcare Research and Quality (AHRQ) and The Joint Commission.  What is patient safety culture?  AHRQ defines patient safety culture as how an organization's culture supports and promotes patient safety. This can extend to multiple levels, from individual units to departments to system levels. The AHRQ patient safety culture survey encompasses the shared values, beliefs and norms of healthcare practitioners and staff that...
Post a Comment
Read more

Community Health Assessment: How to Increase Collaboration

Community Health Assessments (CHAs) are vital for pinpointing community health needs. Enhancing CHAs with greater collaboration, stakeholder engagement and innovation significantly boosts their effectiveness and impact. The biennial CHA process utilizes primary and secondary data to identify priority issues, which assists in developing the Community Health Implementation Plan (CHIP).   1. Engage diverse stakeholders  Inclusive partnerships are essential for addressing health needs effectively by engaging a broad spectrum of stakeholders, including community-based organizations, healthcare providers and policymakers. By involving diverse groups, you can gain a comprehensive understanding of health needs and ensure strong support for health initiatives.   The National Association of County and City Health Officials (NACCHO) emphasizes that engaging a variety of stakeholders is crucial for gathering diverse insights and securing backing for these initiatives.   B...
Post a Comment
Read more