Study Finds Hospice and Palliative Care Reduce Costs and Improve Outcomes

A recent study by Empassion Health analyzed data from 45,957 seriously ill patients receiving hospice and palliative care between January 2023 and April 2025, revealing a 35% reduction in total cost of care per patient during the final year of life compared to others. This study highlights significant improvements in both quality and cost-effectiveness associated with hospice and palliative care services.

Empassion Health, a major provider of supportive care across 45 states, partners with numerous community-based providers, facilitating better care coordination and smoother transitions of care for patients receiving services at home. The study focused on patients with serious illnesses such as cancer, heart failure, dementia, and COPD, with most having multiple comorbidities prior to death, demonstrating that hospice and palliative care address complex medical, emotional, and social needs effectively.

Despite these benefits, only 5% of eligible patients currently receive community-based palliative care, underscoring a significant gap in education and access that contributes to higher caregiver burden, fragmented care, unnecessary hospitalizations, and escalating costs.

The findings suggest opportunities for managed care organizations and health plans to integrate hospice and palliative care more extensively to enhance outcomes for complex patient populations while controlling expenses. Increased awareness and education about end-of-life care options are critical to expanding utilization of these services, which deliver both compassion and cost savings at scale.