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Supportive Housing as a Health Care and Health Policy Solution Diane Louard-Michel & Richard Cho NYS Medicaid Redesign Team Affordable Housing Workgroup November 21, 2011

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Page 1: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Supportive Housing as a

Health Care and Health

Policy Solution

Diane Louard-Michel & Richard Cho

NYS Medicaid Redesign Team Affordable

Housing Workgroup

November 21, 2011

Page 2: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

2

Corporation for Supportive

Housing

CSH is a national non-profit organization that helps

communities create permanent housing with services to

prevent and end homelessness.

CSH advances its mission through advocacy, expertise,

innovation, lending, and grant-making.

Page 3: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Research Shows: Supportive Housing

Improves Health Outcomes

Denver study found 50% of tenants placed into supportive

housing experienced improved health status, 43% had

improved mental health outcomes, and 15% reduced

substance use (Perlman and Parvensky, 2006)

Seattle study found 30% reduction in alcohol use among

chronic alcohol users in supportive housing (Larimer et. al.,

2009)

Supportive housing in San Francisco and Chicago had

significantly higher survival rates for individuals with

HIV/AIDS compared to control groups (Martinez & Burt, 2006;

Sadowski et. al., 2009)

3

Page 4: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Research Shows: Supportive Housing

Increases Impact of Multidisciplinary Care

Reduction in emergency room utilization: 24% to 34% fewer

visits (Sadowski et. al., 2009; Perlman and Parvensky, 2006;

Linkins et. al., 2008).

Decrease in inpatient admissions and hospital days: 27% to

29% fewer admissions and days (Sadowski et. al., 2009; Linkins

et. al., 2008).

Reductions in detox utilization and psychiatric inpatient

admissions: Decreases up to 87% in use of detox services and

decreases in psychiatric admissions (Larimer et. al., 2009;

Mondello et. al, 2007).

Reduction in Medicaid costs: 41 to 67% decrease in Medicaid

costs (Massachusetts Housing and Shelter Alliance, 2011;

Larimer et. al., 2009).

4

Page 5: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Supportive Housing

as a Solution for

Medicaid’s High-

Need, High-Cost

Population

Page 6: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

New York’s High-Need, High Cost

Medicaid Population

Billings‟ (2006) analysis of NYC Medicaid claims data found that:

– 20% of adult disabled

patients subject to mandatory managed care account for 73% of costs

– 3% of patients accounting for 30% of all costs for adult disabled patients

6

Page 7: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

7

A Small Number of

Very High Risk

Homeless Persons At risk for extensive need of health

and justice system services

•The most expensive 10% of

homeless persons have

average monthly costs

$6,529, regardless of whether

they are homeless or housed

Average Monthly Costs in All Months by Decile for Homeless GR Recipients

Source: 2,907 homeless GR recipients in LA County with DHS ER or inpatient records

Deciles based on costs in all months whether homeless or housed

The greatest cost savings can be achieved by prioritizing high-risk individuals

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

Lo

we

st

De

cile

Se

co

nd

De

cile

Th

ird

De

cile

Fo

urt

h D

ecile

Fifth

De

cile

Six

th D

ecile

Se

ve

nth

De

cile

Eig

hth

De

cile

Nin

th D

ecile

Hig

he

st

De

cile

Probation

Sheriff mental healthjail

Sheriff medical jail

Sheriff general jail

LAHSA homelessservices

GR HousingVouchers

General Relief

Food Stamps

Paramedics

Public Health

Mental Health

Private hospitals-ER

Health Srv - ER

Health Srvoutpatient clinic

Private hospitals-inpatient

Health Srv hospital-inpatient

Source: Economic Roundtable, 2011

Page 8: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

8 8

Housing homeless persons with disabilities reduces public costs

When people in the 10th decile are living in permanent supportive housing,

jail costs decrease 97% and health care costs decrease 86%

-$6,000

-$5,000

-$4,000

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

5th 6th 7th 8th 9th 10th 5th 6th 7th 8th 9th 10th

Decile

Probation

Mental health jail

Medical jail

General jail

Homeless srv.

GR Housing Vouchers

General Relief

Food Stamps

Paramedics

Public Health

Mental Health

Private hospital-ER

Health Srv - ER

County clinic

Priv. hospital-inpatient

Co. hospital-inpatient

Monthly costs when living in

permenant supportive housing

Change from costs before

permanent supportive housing

Source: Economic Roundtable, 2011

Page 9: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

9

Five Principles for Supportive

Housing Production

Housing may be single site, integrated, scattered/clustered site

Rental subsidy necessary to house very low income households

Services on site or nearby and linked to medical home

Accessible, particularly for a medically fragile population

Innovative design features tailored to chronically ill populations considered

Page 10: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Three Functions of Services

Tenants are chronically

homeless, have complex

health conditions, and are

resistant to change

Prioritization and

Placement in

Housing

Troubleshooting of

Housing Problems /

Lease Violations

Housing Stability

Engagement

and Rapport

Building

Motivational

Enhancement

and

Empowerment

Services

Goal

Setting

Connection to and

Coordination of

Needed Services

(Health, Behavioral

Health, Employment)

Improved Health and Social

Outcomes (Recovery) 10

Page 11: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Understanding the Services in Supportive

Housing as Three “Stool Legs”

Housing Stability Supports

• Focused on ensuring housing stability

• Troubleshooting housing-related issues

• Preventing lease violations and eviction

Care Management

• Focused on improving health care access and coordination and shifting service use from inpatient/crisis to outpatient/preventive

• Health care assessment, planning, coordination of services

• Can incorporate Wellness Self-Management

Rehabilitative/ Recovery Services

• Focused on skill-building around activities of daily living

• Education about behavioral health, medications

• Peer supports

• Recovery readiness services

• Relapse prevention

11

Page 12: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Enables Understanding of Link to New

Payment Systems Under Medicaid

Housing Stability Supports

• Not Medicaid eligible

Care Management

• Consistent with services model under „Health Homes’ State plan option

Rehabilitative/ Recovery Services

• Eligible under Home and Community Based Services (1915c or 1915i)

12

Page 13: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

13

Informs One State’s 1115 Waiver Request

Create health homes for high-cost

beneficiaries. Health home model will

not be successful in reducing costs for

many high-cost beneficiaries without matching need with

proven services model.

Enroll all beneficiaries into managed care.

Managed care will not be successful for many

high-cost beneficiaries without

mandating health plans provide

intensive interventions for frequent users.

Example: Medi-Cal Reform: Control Costs

Obtain More Federal Funding Improve Health Outcomes Protect Safety Net

Page 14: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Looking Ahead in NY: New Players,

New Paradigms?

To better address high cost, high need Medicaid beneficiaries

will supportive housing‟s services be assembled in a modular

fashion and how will new stakeholders participate in delivery

and funding models?

– Health Homes/Managed Care Plans bear some costs of

expanding access to supportive housing for priority Medicaid

cohorts?

– Home and Community Based Services, Nursing Home

Diversion waivers to reimburse rehabilitative services?

– State grant or federal MH or SA block grant funds to pay for

rental subsidies and housing stability supports?

14

Page 15: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Looking Ahead: Supportive Housing

Linked to Health Homes

Adopting Health Homes State plan option should

encourage and improve integration of care

management with affordable supportive housing

15

Lead

Provider

(FQHC)

Provider

HEALTH HOME

Provider Provider

Provider Provider

Page 16: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

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•Looking Ahead: Policy and

Program Design Considerations

Health Homes (and/or

Managed Care Mandate) Must

Include Stratified

Approach that Identifies

People Needing Intensive

Interventions:

Community-based interventions

Predictive modeling or other means of identifying people needing intensive interventions.

• Based on number of avoidable ED visits or risk of mortality.

• Takes into account social barriers to appropriate healthcare access.

Linkage to community services, particularly housing, for people who are homeless or unstably housed.

Assessment of physical and behavioral health conditions.

Enhanced motivation to engage clients.

Multidisciplinary team and/or referral to primary care and mental health/substance abuse professionals.

Page 17: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Contact

Diane Louard-Michel

Director, CSH New York

[email protected]

Richard Cho

Director, Innovations & Research

[email protected]

17

Page 18: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

Appendix

Supportive Housing

and Health Care –

Best Practice

Examples and

Outcomes

Page 19: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

19

San Francisco, CA

Direct Access to Housing (DAH)

Program takes people who have concurrent mental health, substance abuse and mental health conditions directly from streets into permanent housing. All are high users of public health system.

FQHC (HCH grantee) provides on-site primary health care, mental health and other support activities to the 600 tenants; billed through Medicaid and HRSA

Weekly case coordination with all service providers of tenants

Positive outcomes: – 58% reduction in ER use

– 57% reduction in inpatient episodes

– Decrease in number of days per psychiatric hospitalization

Page 20: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

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Portland, OR - Central City Concern’s

Community Engagement Program

Scattered-site supportive housing linked to ACT teams for chronically homeless adults with co-occurring mental illness and substance abuse

Provides wrap-around support and peer recovery model (including consumer-run drop-in center)

Evaluation findings: – Tenants had average of 3.7

years homeless and used $42,075 in emergency services annually

– After 1 yr, service utilization decreased to $17,199, with housing and services that cost $9,870 (Total cost of $27,069)

– Total annual cost savings per person: $15,006

Page 21: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

21

Illinois Dept. of Mental Health :

Systems Rebalancing – LTC to PSH

DMH developed a systems rebalancing initiative to facilitate:

– Transitioning individuals with mental illness and residency in Long

Term Care (nursing homes) to permanent affordable and supportive

housing in the community

– Address Olmstead issues

Initiative dovetailed with federal demonstration transformation grant

“money follows the person”

Legislature appropriated $7 million from Hospital Tax-Lock Box for

Permanent Supportive Housing development

Initiative created “bridge” subsidy to address gap between the time a

consumer could leave the nursing home or other institution and the time

they can access a Housing Choice Voucher (HCV) in the community

with no pre-determined length

Page 22: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

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Portland, OR - Central City Concern’s

Community Engagement Program

Scattered-site supportive housing linked to ACT teams for chronically homeless adults with co-occurring mental illness and substance abuse

Provides wrap-around support and peer recovery model (including consumer-run drop-in center)

Evaluation findings: – Tenants had average of 3.7

years homeless and used $42,075 in emergency services annually

– After 1 yr, service utilization decreased to $17,199, with housing and services that cost $9,870 (Total cost of $27,069)

– Total annual cost savings per person: $15,006

Page 23: Supportive Housing as a Health Care and Health Policy Solution€¦ · Housing homeless persons with disabilities reduces public costs When people in the 10th decile are living in

23

Seattle, WA – DESC’s 1811 Eastlake

Avenue

Supportive housing for 75 homeless alcoholics who are high users of detox, treatment, health and corrections

Tenants identified through pre-generated list of high Medicaid-funded crisis services

Evaluation demonstrates that six months after placement, the project resulted in a 63% reduction in costs associated with use of crisis alcohol services (detox)