Medicare Sees a 2.7x ROI with Hinge Health, According to a New Study

Today, Hinge Health announced results of the first-ever study demonstrating the financial benefits of digital musculoskeletal (MSK) care for the Medicare population. The third-party analysis, Hinge Health Medicare cost and utilization study, showed a 2.7x ROI for Medicare driven by statistically significant reductions in medical-service use and annual healthcare savings of $2,655 per Hinge Health participant compared to a control group.

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Hinge Health Medicare Cost and Utilization Study (Photo: Business Wire)

Researchers conducted a 2-year medical claims analysis using Medicare enrollment and claims data under Medicare Parts A and B. The actuarial study examined spend and service use in the 12 months following program enrollment. The Hinge Health group took part in a digital MSK program that included exercise therapy, wearable sensor technology, and support from a care team of a physical therapist, orthopedic surgeon, and health coach, while the matched control group participated in in-person physical therapy.

Key findings demonstrating the benefits of Hinge Health’s approach for the Medicare population include:

Lower MSK-related costs: Hinge Health participants spent 6.2x less on MSK-related healthcare costs, resulting in a $2,655 annual medical claims reduction compared to the control group. With these cost savings, Medicare sees a 2.7x ROI.

Fewer medical services used: Hinge Health participants sought fewer medical services (including primary care and specialist visits) in the 12 months following their enrollment in the digital MSK program, with a staggering 13.5x reduction in hospital use compared to the control group.

Savings driven by avoided osteoarthritis costs: Much of the cost savings for Hinge Health participants came from reduced use of osteoarthritis services. Of the total savings, nearly half was associated with avoided osteoarthritis care.

Osteoarthritis costs the U.S. economy more than $300 billion each year, which could continue to grow with the rising prevalence of arthritis. By 2040, it’s expected that 1 in 4 Americans will be diagnosed with arthritis, a majority of which would be older adults.

“Older adults are often overlooked when it comes to digital healthcare technologies and cost increases are simply assumed. With America’s aging population and growing prevalence of MSK conditions, we must focus resources and innovation to make a difference in the care they receive,” said Dr. Jeff Krauss, chief medical officer, Hinge Health. “This study indicates that Hinge Health’s clinically validated and accessible Digital MSK Clinic can significantly improve member outcomes and reduce healthcare costs for Medicare.”

“It’s encouraging to see results like these,” said Patrick Curran, actuarial consultant and Society of Actuaries fellow. “The substantial cost savings and reduced utilization of services among the Hinge Health participants have the power to influence how Medicare provides MSK care to its members and demonstrates the type of innovative, quality care members can receive right at their homes.”

Hinge Health is now the only digital MSK solution to demonstrate clinical and financial benefits for those over 65. The findings of this study are aligned with previously published studies, including the industry’s first study investigating the impact of a digital MSK program on an older adult population. The study found that older generations used a digital MSK program more than younger generations, and Baby Boomers, in particular, have significantly higher odds of pain improvement.

About Hinge Health

Hinge Health is building the world’s most patient-centered Digital Musculoskeletal (MSK) Clinic™. It is now the leading Digital MSK Clinic, used by four in five employers and 90% of health plans with a digital MSK solution. Hinge Health reduces MSK pain, surgeries, and opioid use by pairing advanced wearable sensors and computer vision technology with a comprehensive clinical care team of physical therapists, physicians, and board-certified health coaches. Hinge Health’s HingeConnect integrates with 1 million + in-person providers and enables real-time interventions for elective MSK surgeries, driving proven medical claims reduction. Available to millions of members, Hinge Health is widely trusted by leading organizations, including Land O’Lakes, L.L. Bean, Salesforce, Self-Insured Schools of California, Southern Company, State of New Jersey, US Foods, and Verizon. Learn more at http://www.hingehealth.com.

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