Background:
While healthcare costs continue to grow, an aging population along with rising chronic diseases are increasing demand for high-quality end-of-life care.
Objective:
Our objectives include calculating hospital cost sub-categories, such as laboratory, medication, nursing, physician, and social counseling, and evaluating the economic impact of specialist palliative care (sPC) on overall hospital costs per stay and per day of severely ill and dying patients who died at a Swiss university hospital between 2016 and 2022.
Design:
Retrospective, observational cohort study with a control group.
Methods:
We used administrative cost data from the final hospitalization of patients who died at a university hospital in Switzerland. We compared hospital costs of patients receiving care, including sPC, with those of individuals receiving usual care (UC). We defined timely sPC referral as initiating within 3 days of admission. We used a generalized linear model—assuming gamma-distributed errors and with a logarithmic link function—adjusted by inverse probability weighting to adjust for patient characteristics differences.
Results:
Adjusted overall hospital costs per stay were higher for sPC (Swiss francs (CHF) 31,350 (95% confidence interval (CI) 28,590–34,854)) compared with UC patients (CHF 20,351 (95% CI 18,454–22,596)); mean ratio of 1.54 ((95% CI 1.34–1.77), p < 0.001). In contrast, adjusted overall daily costs were lower for sPC patients (CHF 400); mean ratio 0.87 ((95% CI 0.79–0.97), p = 0.005), mainly due to reduced diagnostic and medication costs. However, longer hospital stays (sPC 11 days vs UC 5 days) offset daily cost reductions. UC patients had nearly double the total costs of timely sPC referral patients (cost ratio 0.52, CI 0.46–0.58).
Conclusion:
To capture intended and unintended effects and avoid oversimplified cost debates, hospital cost analyses of sPC should examine detailed cost sub-categories rather than only total costs. Cost optimization could be reached by timely transfer of patients with sPC needs. Future studies should investigate barriers to transitioning patients across care settings to improve both quality and cost-effectiveness.
Plain language summary
How palliative care changes hospital costs at the end-of-life: Insights from a Swiss University Hospital
As people age and chronic illnesses become more common, more people need high-quality care at the end of their lives or end-of-life care. Hospitals must provide end-of-life care, while also keeping costs manageable.
We examined hospital costs for patients who died at a university hospital in Switzerland between 2016 and 2022.
We compared two groups: patients who received specialist palliative care (sPC) and patients who received usual care (UC).
sPC focuses on
• relieving symptoms
• improving comfort
• supporting patients and families
We looked at hospital cost data, including expenses for staff; medications; laboratory; and other services, then we made adjustments for patient characteristic differences.
Since we found patients receiving sPC had longer hospital stays (11 days) when compared with UC patients (5 days), their total hospital costs per stay were higher (about CHF 31,000 for sPC vs. CHF 20,000 for UC).
However, patients receiving sPC showed lower daily hospital costs by around CHF 400—a lower cost mainly from receiving fewer diagnostic tests and taking less medications.
Our findings suggest that while sPC reduces the intensity and cost of care per day, the longer stays mean that overall costs per stay are higher.
Based on our study, we developed a few recommendations. To make the most of benefits from sPC, hospitals could combine it with timely discharge planning and good follow-up options, such as hospice, home-based care, or long-term care facilities.
Our recommended approach could improve patient comfort, maintain quality, and help manage healthcare costs more effectively, while supporting patients and their families at the end of life.