UnitedHealth's Optum has acquired Vivify Health to tackle hospital readmission rates - Business Insider

Through this acquisition, Optum has an opportunity to significantly reduce costs from hospital readmission rates and better manage care for patients with chronic diseases. Hospital readmissions are a major, avoidable expense in healthcare: As many as of patients who've had congestive heart failure end up back in the hospital within 30 days, leading to higher claims costs for payers, for example.

But RPM systems are capable of intervening by reminding patients to keep up with their post-treatment care routines and keeping doctors abreast of patients' progress via smart device-generated data, like Vivify's blood pressure cuffs or consumer wearables such as . Hence, RPM enables doctors to spot when a patient's health is in decline earlier so that less cost-intensive measures can be taken — such as scheduling an outpatient visit from a nurse practitioner.

This form of preventative care can be especially effective at cutting costs for chronic disease patients, as they account for of US healthcare spend: For instance, if doctors can spot when a diabetes patient is experiencing unhealthy blood glucose levels, it's possible to intervene before more serious health issues develop.

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