AN INNOVATIVE APPROACH TO REDUCING MEDICAL-CARE UTILIZATION AND EXPENDITURES

In a retrospective study, we assessed the impact on medical utilizatio n and expenditures of a multicomponent prevention program, the Maharis hi Vedic Approach to Health(SM) (MVAH). We compared archival data from Blue Cross/Blue Shield Iowa for MVAH (n = 693) with statewide norms f or 1985 through 1995 (n = 600,000) and with a demographically matched control group (n = 4,148) for 1990, 1991, 1994, and 1995. We found tha t the 4-year total medical expenditures per person in the MVAH group w ere 59% and 57% lower than those in the norm and control groups,. resp ectively; the 11-year mean was 63% lower than the norm. The MVAH group had lower utilization and expenditures across all age groups and for all disease categories. Hospital admission rates in the control group were 11.4 times higher than those in the MVAH group for cardiovascular disease, 3.3 times higher for cancer, and 6.7 times higher for mental health and substance abuse. The greatest savings were seen among MVAH patients older than age 45, who had 88% fewer total patient days comp ared with control patients. Our results confirm previous research supp orting the effectiveness of MVAH for preventing disease. Our evaluatio n suggests that MVAH can be safely used as a cost-effective treatment regimen in the managed care setting.