|Date:||February 16, 2001|
|To:||Sen. Toni Harp|
You asked me to compare costs per person for SAGA medical recipients at the Hill Health Center (HHC) in New Haven vs. those costs for recipients statewide. The premise that there might be a difference is based on the fact that the HHC has had a system of case management in place for GA recipients for over a decade.
The Hill Health Center cared for 3002 SAGA consumers in FY 2000 and billed a total of $1,437,810 for physician services, clinic services, transportation, dental and lab (not X-ray, although the state's accounting system merges those two) during FY 2000. This comes to an annual cost of $479/person.
Statewide in June 2000, the state spent $1,242,080 on those same services (including X-ray) for a caseload of 22,563 (for the next month - July 2000). Annualizing that month's expenses comes to $660.06/person.
In this analysis, HHC clients cost 27% less than the average CT SAGA medical client did. If these savings could be extended to the rest of the population and other SAGA services, the state could realize a savings of $28,091,086 each year. This is more than double the $11,930,000 savings proposed by the Governor for FY 02 from service reductions.
If these savings are realistic, it is even possible that a statewide system of care management by community health centers could save enough money to allow an expansion of SAGA medical eligibility to higher income levels.
There are several sources of potential error in these calculations. Three come to mind: