EXHIBIT 2.

Calculation of inpatient and outpatient costs for intervention versus control patients and return on investment for a team of Individualized Management for Patient-Centered Targets (IMPaCT) community health workers (CHWs), in one fiscal year

	Number
Estimated total (facility and professional) Medicaid cost per admission	$16,478
Number of patients per CHW team	330
Inpatient costs for intervention patients
Admissions per patient-year	0.45
Admissions per CHW team	149.6
DRG case-mix weight for admissions	0.92
Case-mix-adjusted per admission cost for admissions	$15,159.76
Total inpatient costs for intervention patients	$2,267,900.10
Inpatient costs for control patients
Admissions per patient-year	0.64
Admissions per CHW team	212.76
DRG case-mix weight for admissions	1.05
Case-mix-adjusted per admission cost for admissions	$17,301.90
Total inpatient costs for control patients	$3,681,206.88
Inpatient cost savings	$1,413,306.79
Outpatient costs for intervention patients
Outpatient visits per patient-year	12.2
Outpatient visits per CHW team	4,026
Average Medicaid cost per outpatient visit	$45
Total outpatient costs for intervention patients	$182,981.70
Outpatient costs for control patients
Outpatient visits per patient-year	11.4
Outpatient visits per CHW team	3,762
Average Medicaid cost per outpatient visit	$45
Total outpatient costs for control patients	$170,982.90
Excess outpatient costs	$11,998.80
Estimated Medicaid savings per year	$1,401,307.99
Return on investment	$2.47

sources Pennsylvania Healthcare Cost Containment Council and authors’ analysis. notes Numbers might not add to totals because of rounding. The return on investment is the estimated Medicaid savings divided by expenses per team. DRG is diagnosis-related group.