How HCOs are leveraging alternative payment models to address SDoH

Earlier this year, the U.S. Department of the Treasury announced a significant funding opportunity for states and local governments looking to invest in social determinants of health (SDoH). The opportunity stems from a little-known provision in the Bipartisan Budget Act of 2018: the Social Impact Partnerships to Pay for Results Act (SIPPRA). Of the $100 million appropriated under the law, the Treasury Department has allocated nearly $66.3 million to finance outcomes-based payments for “social impact partnership projects.”

In 2017, the U.S. spent nearly $3.5 trillion, or 18 percent of the GDP, on health expenditures – more than double the average among developed countries. Despite paying more than triple per person on healthcare, the U.S. continues to have the lowest average lifespan in contrast to other nations.

Can supportive housing programs help lower costs and improve health outcomes?

Over the past 15 years, research has revealed a consistent link between housing and health. A lack of stable, affordable and adequate housing can have severe implications for a patient’s health. Substandard living conditions influence many of the most serious chronic health problems. Housing that is safe, clean and adequately maintained can reduce the likelihood of adverse health outcomes by decreasing the probability of preventable conditions like injuries, neurotoxicity or asthma and it can also reduce the costs associated with care.

Healthcare in the United States ranks last out of 11 developed nations in the world (Citation 1). We lag far behind the UK, Australia, the Netherlands and seven other countries in access, equity, and health care outcomes. Yet, we spend more on healthcare than any of them. However, we spend much less on social services than any of the other 11 countries and therein lies the problem.

It’s no secret that disparities exist within our healthcare system. Whether it is race, ethnicity, location, or socioeconomic status, health inequality is prevalent.

It’s no secret that America spends a lot on healthcare. At 18% of GDP, a total of $3.2 trillion, America spends more on healthcare than any other country. However, recent data suggests the issue is less about how much we spend, and instead, where we spend it.