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State auditor report finds big savings in CCNC

State auditor report finds big savings in CCNC

State Auditor Report Finds Big Savings in CCNC

Statement from Dr. Tom Wroth, executive vice president & chief operating officer at CCNC

We are pleased that, once again, an independent study of CCNC’s impact by an external reviewer has validated the cost savings generated by our nonprofit, patient-centered medical home system. The report shows that CCNC generates a three-to-one return on investment for the State, with every dollar invested in the nonprofit CCNC program generating over $3 in savings. All of these savings are returned to the state, with savings averaging $312 per member per year after accounting for program costs. This represents a savings of about 9 percent of NC Medicaid costs.

The largest spending reductions were seen for inpatient services, with a 25% reduction in inpatient admissions. Meaningful savings were also observed in pharmacy spending despite increased medication use, driven by a shift to less expensive medications. Similarly, spending on ambulatory services declined despite an increase in physician visits, reflecting a shift away from expensive services and sites of care. The audit confirms that effective use of local resources to improve care returns significant savings to the State. CCNC currently serves 1.4 million Medicaid beneficiaries.

The full text of the study is available here.