Remedy: Hospital discharge algorithm saves $860 per patient episode and reduces readmissions, according to new data from Remedy Labs

Proprietary Tool Identifies Best Recovery Setting for Patients Post Discharge, Sheds Light on Power of Episodes in Transforming Healthcare

This release was prepared by Remedy.

New York, NY (June 17, 2019) — Remedy, America’s leading episodes of care company, today announced findings from its study, “Association of Decision Support for Hospital Discharge Disposition with Outcomes,” published in the June 2019 edition of The American Journal of Managed Care®. Remedy connects employers, insurance companies and health care systems to deliver more cost-effective care and improved consumer experiences.

The study verified the efficacy of a clinical decision support (CDS) algorithm in determining the optimal next site of care for patients leaving the hospital while avoiding unintended effects such as increases in readmissions, emergency department (ED) use and overall spending. The algorithm was built and tested within Remedy’s innovation incubator, Remedy Labs, and is currently in use by several Remedy partners through the proprietary Care at the Right Location (CARL) tool.

“Spending on post-acute care accounts for a substantial portion of overall healthcare costs and is growing faster than any other spending category, so it’s important for providers to be thoughtful about how they utilize those resources,” said study author and Chief Medical Officer at Remedy, Win Whitcomb, M.D. “The CARL tool is a gamechanger for organizations participating in value-based payment models like ACOs and bundled payments where this category represents an opportunity for savings, but it’s also important to patients who want to recover in the comfort of their own homes whenever possible.”

Takeaway points from the study include:

  • Following the algorithm’s recommended level of care was associated with an $860 decrease in spending, fewer readmissions, and unchanged ED use over a 90-day episode compared to those where the recommended level of care was not followed.
  • The judicious use of post-acute care resources by the hospital discharge team can be enhanced by using the decision-support algorithm.
  • Remedy’s CDS algorithm incorporating cognition, ambulation, activities of daily living, capable caregiver availability, skilled therapy and skilled nursing needs was evaluated in 15,887 patients participating in Medicare’s bundled payment program.

“At Remedy, we are constantly seeking new ways to drive greater value, efficiency, and health outcomes, and we’ve created something remarkable with CARL,” said Remedy President and CFO, Steve Senneff. “Many of our provider partners are already seeing the benefits of deploying the right resources at the right time, including better outcomes for patients and significant savings that can be reallocated to fulfill other needs. That is the promise of high-quality healthcare and the power of reorganizing care around patient episodes.”

Study Design

This study entailed a retrospective review of a fee-for-service Medicare patients age 65 and older linked to a database of patients receiving CDS.


The study evaluated patients whose discharge disposition was consistent with the CDS recommendation versus those whose were not and patients receiving CDS for discharge disposition versus those who did not, regardless of concordance. Outcomes were linked to spending over a 90-day episode, 90-day readmissions and ED utilization not associated with a readmission.

Remedy Labs

Remedy Labs is an innovation incubator that identifies and studies the clinical efficiencies that are employed across Remedy’s business lines. Led by our clinicians, Remedy Labs analyzes our massive claims database to identify the levers that truly impact care delivery and promotes care redesign through shared knowledge to drive innovation in healthcare delivery via episodes. A central focus of Remedy Labs is the human aspect of care delivery, focusing on patient and value first, to highlight impact for patients and providers.


Remedy is America's leading episodes of care company, which connects employers, insurance companies, and health care systems to deliver more cost-effective care and improved consumer experiences. Remedy delivers software and services enabling health care providers and health insurers to organize and finance health care around patient episodes of care. The Company’s bundled payment network serves Medicare and private insurers and manages over $9 billion of annual health spending. For more information, visit

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