Multifaceted approach to treatment offers significant financial benefits while improving quality of patient care

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA) today announced results(1) from a recent study showing significant decreases in both hospital and payer costs and hospitalization rates for severe chronic obstructive pulmonary disease (COPD)(2) patients. The study entitled, “Cost Savings from Reduced Hospitalizations with Use of Home Noninvasive Ventilation for COPD,” calculated savings associated with the use of advanced noninvasive ventilation (NIV)(3), specifically Philips Trilogy 100 with AVAPS-AE mode, compared to Oxygen therapy alone or the use of less advanced NIV therapy following patient discharge. The economic model revealed that both hospitals and payers can benefit from significant reductions in hospitalizations, readmissions and healthcare costs while also greatly improving the quality of care for patients living with COPD.

As one of the most common, underdiagnosed diseases worldwide and the third leading cause of death in the U.S.(4), COPD continues to be a growing challenge for the healthcare industry. This disease affects an estimated 384 million individuals worldwide, while millions more remain undiagnosed(5). Not only is it a major cause of morbidity and mortality, but COPD is a reason of substantial increases in healthcare costs, mainly due to the result of inpatient admissions, making it an economic burden with associated costs estimated to be $50 billion by 2020(6). Adding to the economic and personal distress for COPD patients, care is usually discontinued once discharged from the hospital, often resulting in re-hospitalization.

In an effort to lessen this burden, the Philips-sponsored study reviewed how hospitals and payers can more efficiently and effectively manage this COPD treatment and related comorbidities by implementing an advanced mode of NIV in the home care setting. This was reviewed in a multifaceted program that incorporates a combination of therapies including treatment using advanced NIV therapy provided by Philips Trilogy100 (AVAPS-AE modality), oxygen therapy, respiratory therapist-led care, patient education and medication reconciliation. This at-home program has now proven its potential to provide both hospitals and payers with tremendous savings while also offering the patient with treatment at home.

Key findings(7) include:
• Hospital Savings: For a hospital covering 250 severe COPD patients, reduction of readmissions led to cumulative savings of $402,981 over 30 days and $449,101 over 90 days with a multifaceted therapy approach using Philips Trilogy in-home advanced NIV therapy versus no NIV treatment or less advanced NIV therapy devices. After examining 1,000 COPD patients being treated with this same combined treatment method using Trilogy, hospitals saved $1.6 million in the first 30 days and $1.8 million in 90 days compared to no NIV treatment or less advanced NIV therapy devices.
• Payer Savings: Payers studying admissions of 100,000 severe COPD patients had cumulative 3-year savings of $326 million when using home NIV in comparison to no NIV treatment. Additionally, payers saved $1.04 billion cumulatively when using home NIV treatment compared to using a less advanced NIV therapy device over a three year period.

"The multifaceted and connected home NIV model described in this study can be easily adopted by other medical facilities and payers, and is expected to have a meaningful impact on both clinical outcomes and healthcare costs,” said Dr. Teofilo Lee-Chiong, pulmonologist and Chief Medical Liaison, Philips. “As health systems continue to promote value-based care, it is increasingly important to demonstrate that programs like these can reduce costs while improving patient experiences using economic studies."

With COPD being the most common cause for readmissions, this data supports the role of home care in COPD management. Available globally, the Philips Trilogy100 device used in this study offers the unique AVAPS-AE modality designed to tailor treatment and provide increased support for patients from hospital to home, while automating the titration process. It is the most widely dispensed portable ventilator in North America(8). AVAPS-AE advanced mode of ventilation is also available in Philips BiPAP A40 device available outside the United States.

This latest study builds on other recent findings, that show how Philips connected technologies can not only provide seamless care and improve the patient experience, they can contribute to significant reductions healthcare costs.

For additional information on Philips’ solutions for sleep and respiratory care, follow @PhilipsResp or visit www.respironics.com.

1 Coughlin, S., Lee-Chiong MD, T. (2017). “Cost Savings from Reduced Hospitalizations with Use of Home Noninvasive Ventilation for COPD.” Published. http://www.valueinhealthjournal.com/article/S1098-3015(16)30068-7/abstract
2 Severe COPD was defined as Global Initiative for Chronic Obstructive Disease(GOLD) stages II to IV.
3 Averaged volume assured pressure support with autoexpiratory positive airway pressure
4 "How Serious Is COPD." American Lung Association. Web. 07 Mar. 2017.
5 Adeloye, D. (2015). “Global and regional estimates of COPD prevalence: Systematic review and meta–analysis.” Published. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4693508/
6 Murphy DO, T. (2016). “Is Variation on Following the GOLD Guidelines Provider Dependent?” Published. http://journal.publications.chestnet.org/article.aspx?articleid=2568785&resultClick=1
7 Results are based on a single-center initiative and may vary by institution. See “Cost Savings from Reduced Hospitalizations” study limitations section.
8 Philips–sponsored market survey study of 120 DMEs on the brands of ventilators the DMEs set-up for patients in May 2016.