Nashville, Tenn. Implementing a comprehensive diabetes disease management program not only can improve the health of Medicare beneficiaries but also decrease total costs by 17.1 percent per year, or $1.36 million for every 1,000 Medicare members with diabetes, according to a study by American Healthways.

"This is the first large-scale analysis to confirm that this approach works for a Medicare population who typically needs more health care services and is at higher risk for chronic conditions," said Robert Stone, American Healthways' executive vice president. "This analysis further suggests that disease management can have a significant impact on the Medicare program as a whole, allowing the program to reduce the clinical and financial burden of diabetes on the Medicare population and U.S. economy."

Using the first-year results of patients who participated in the company's Diabetes Healthways program, the report analyzed clinical and financial data taken from four Medicare managed care plans that have 175,000 members, 20,539 of whom have diabetes. The analysis, said study experts, demonstrated that the improvements in the clinical indicators of the patients' health status and better compliance with standards of diabetes care resulted in a reduction of health care costs.

Some of the study's clinical findings showed that, for patients admitted to the hospital with diabetes as their primary diagnosis, hospital admissions decreased 25.9 percent, bed days by 34.4 percent and the average length of stay by 11.4 percent. The report also found that the percentage of program participants showed an improved adherence to care standards. The percentage of those receiving at least one glycosylated hemoglobin test rose 21 percent; the dilated retinal eye exam, 8 percent; foot exam, 388 percent; serum creatinine test, 400 percent; and cholesterol screening, 300 percent.

In addition, the study concluded that the largest decrease in costs for members with diabetes was because of a decrease in hospital admissions. Hospitalization costs for all diabetic members fell by 15.9 percent.

"These findings reinforce the fact that disease management programs play an important role in the current national debate as how best to modernize Medicare for current and future generations," said U.S. Sen. Bill Frist, R-Tenn., a disease management advocate.

To obtain a copy of this report, call (314) 982-7734, or access American Healthways' Web site at www.americanhealthways.com.