7.31.2011

"San Francisco found a 56 percent decrease in emergency department visits by its chronically homeless population after providing them with permanent supportive housing."

Whenever I think about the costs  arising out of just one person's period of chronic homelessness (and there are conservative estimates that some 110,000 others are out there racking up similar dollar figures day after day, year after year as well) and how our nation collectively attempts to address them, I am reminded of the old Fram Oil Filters commercial:


It costs a typical American city about $40,000 on average when one person goes homeless in the city.

For 40K, we should be able to house, feed, clothe, and provide that person with enough disposable income to actually enjoy some of the finer things of life, compared at least to living in a cardboard box behind the local Walmart.

For 40 grand a year, a person should be able to rent a very nice apartment or buy a home in the $170,000 price range.  They should be able to eat healthy meals, purchase a car and maintain the upkeep, including registering and insuring it.  They should be able to even take a vacation and still have enough to put a few dollars away for savings, Christmas and a rainy day.  Finally, if they're careful, they can invest in their 401K and even retire with enough income that, when combined with their Social Security pittance, can avoid having to eat dog food in their golden years.

Said it before and will say it again until we decide to actually reverse the approach:
We're pennywise and pound foolish and we simply cannot afford to do business this way any longer....



Helping Chronically Homeless People Avoid High-Cost Health Care

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FEDERAL POLICY BRIEF | 28 JUL 2011

FILES: PDF | 277 KB | 1 PAGE

Policymakers seeking strategies to manage health care costs often look at ways to reduce unnecessary emergency room visits and hospital stays. Frequently overlooked in this approach are community-based solutions that offset health care costs associated with homelessness.

The national estimate of people who were homeless in the United States on a given night in 2010 is 649,917. Roughly 17 percent of that number- or 109,802 individuals - are considered “chronically homeless.” Chronically homeless individuals are homeless repeatedly - four or more times in the past three years - or for long periods of time. They suffer from serious mental illnesses, substance abuse disorders, and physically disabling conditions. Typically uninsured, they frequently use (and may overuse) emergency room services to address complicated health needs exacerbated by living on the streets or in shelters. As a result, hospitals are among the safety net providers most affected when chronically homeless people lack access to primary care. Unnecessary costs and the lost opportunities to promote public health are borne by the entire health care system, particularly Medicaid and other public programs.

One policy alternative that is proven effective in reducing chronic homelessness, as well as public health care costs, is permanent supportive housing. Permanent supportive housing programs provide affordable housing accompanied by supportive on-site or community-based services such as mental health and substance abuse treatment, health care, and other ongoing supports. Housing placement and supportive services stabilize people experiencing chronic homelessness, so they can access care and preventive measures more appropriately, reducing the need for emergency room care and resulting public costs.

A number of states and cities have implemented permanent supportive housing strategies and have documented relative costs offset by this public intervention. Portland, Maine, reduced emergency room annual expenditures by $1,296 per chronically homeless individual given permanent supportive housing. Similarly San Francisco found a 56 percent decrease in emergency department visits by its chronically homeless population after providing them with permanent supportive housing. A mounting number of studies and documented success stories definitively find not only the cost effectiveness of permanent housing interventions in reducing emergency room costs, but marked success in reducing chronic homelessness.

For health policy, the implications are clear: Initiatives to reduce unnecessary hospital costs should enable local safety net systems to target appropriate interventions toward chronically homeless people. Appropriate interventions include health care and supportive services, such as those that Medicaid provides, that enhance the effectiveness of permanent housing solutions.

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