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Commissioned by Courtland HT in collaboration with its technology partner Healthsense and the NewCourtland LIFE Program, a Philadelphia-based PACE provider, the study found that safely moving 33 seniors from nursing homes and into NewCourtland Square, a supportive housing complex, resulted in savings of $1.85 million annually. The units at NewCourtland Square are outfitted with sensor technology to exclusively serve seniors 60 and older who are transitioning out of nursing homes.

The sensor technology provided by Courtland HT and powered by Healthsense was used to monitor the health and well-being of the participating NewCourtland Square residents for nearly two years. The combined cost of technology and staff support for the 33 residents was $288,600 for one year in supportive housing, compared to the $2.14 million total annual cost of nursing home care. The annual cost of the sensor technology alone was $39,000.

“It is clear from NewCourtland’s success with technology that PACE clients can live more independently and less expensively than in nursing homes,” the report states. “PACE programs that use technology to monitor clients are more likely to reduce the incidence of hospitalization, and use of technology as part of PACE programs can reduce the FTE caregiver staffing requirements.”

The study’s findings were documented in a white paper entitled “Benefits of Technology in Philadelphia PACE Program” written by Laurie Orlov, founder of Aging in Place Technology Watch.

The sensor technology was also found to be effective in private homes. The study reported that a senior resident who consistently wandered away from the private residence where they lived with an adult child has been able to live safely at home for the past two years with the support of remote monitoring and avoid nursing home placement. The combined annual cost for technology and staff support at the home was $11,100, compared to $82,125 for nursing home care – a savings of $71,025. The annual cost of the technology alone was $1,500.

“The results in this study affirm that Healthsense’s technology allows seniors to continue living safer and more independently in less expensive, less resource-intensive housing with a high quality of life,” says Brian Bischoff, President and CEO of Healthsense. “The cost of our technology is a minimal investment when compared to the expense of nursing home care – $125 per month per person versus $6,000 per month per person. At a time when state and federal healthcare budgets are under severe pressure, technology-supported independent living is a viable and much less-expensive alternative to nursing home care.”

Other benefits of the technology include reductions in expensive emergency room visits and hospitalizations for residents as a result of the system’s ability to promptly detect changes in health and behavior patterns that could indicate a clinical problem.

“NewCourtland’s experience over the past two years has demonstrated that PACE participants can live safely in the community with fewer hospitalizations and longer deferral of or avoidance of nursing home placement,” the report concludes.

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Read more: Study Finds Remote Monitoring Technology Enables Seniors to Remain Independent Longer Reduces Care Costs for Providers