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Hospitalization In Healthcare

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Childbirth is the most frequent reason for hospitalization in the United States. With more than four million babies born annually in U. S. hospitals (Kozhimannil), and more than 100,000 babies born to Tricare beneficiaries annually (Abramson), the cost of maternity and newborn care exceeds any other hospital expense – and those costs are rising (Truven Analytics). With budget cuts necessitating review of Tricare benefits and payments for medical services of all kinds for beneficiaries, it would seem counterintuitive to suggest that a way for Tricare to save money on maternity and newborn care would be to cover a new service. However, research shows that the cost savings associated with doula support during labor and delivery are significant …show more content…
Research has shown that the cumulative cost associated with the approximately four million annual hospital births in the United States exceeds $50 billion annually – almost 10% of all inpatient hospital costs (Rosenthal). With approximately 100,000 births to Tricare beneficiaries annually, the extrapolated cost to Tricare annually for hospital births is likely in excess of $1.25 billion or more, since Tricare’s coverage of maternity/pregnancy care, postpartum care and newborn care is very generous. While that $1.25 billion is a small part of Tricare’s annual budget of almost $48 billion, the Department of Defense (DoD) is looking for cost savings in Tricare. For the 2015 fiscal year, the DoD’s budget proposal for Tricare included $9 billion in savings through increased co-pays and new out-of-pocket costs for beneficiaries (Kime). With a clear mandate to find opportunities for cost-savings and reliable data on the cost of maternity and newborn healthcare, ways to save money on this key expense must be considered by DoD …show more content…
The economic benefit to insurers like Tricare is that a doula can help decrease medical costs by decreasing unnecessary medical interventions – many of which are seen as precursors to Caesarean deliveries – and promoting and supporting less expensive vaginal births (Devereaux). Doulas are trained to provide one-on-one, continuous labor support to laboring mothers, with a focus on uncomplicated pregnancies. In addition, they serve as childbirth educators to their clients leading up to delivery (Devereaux). Research shows that doula clients are less likely to have Caesarean births than women without doula care (Paterno). In a study of middle-class maternity patients, the Caesarean delivery rate for women receiving doula support during labor and birth was just 13.4 percent, compared to 25 percent of the control group in the study that did not receive doula support (McGrath). Research has shown a 40.9 percent reduction in Caesarean section rates for Medicaid patients who received doula support

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