Avoidable healthcare costs, especially from unnecessary hospital visits and ED usage, drain over $30 billion from the U.S. healthcare system each year, according to the Agency for Healthcare Research and Quality (AHRQ). These preventable events are especially common among older adults, who often lack the support needed to manage health incidents before they escalate.
As America’s senior population grows, the need for smarter, more sustainable care models is becoming more critical. Personal emergency response systems (PERS) offer a simple yet effective solution to better support the complex needs of aging and vulnerable populations. By providing access to support in the moment of need, PERS helps enable earlier interventions, improve safety, promote independence, and ultimately reduce avoidable healthcare costs.
Below are five proven ways PERS can help reduce unnecessary healthcare spending:
1. Reduce Emergency Department Visits with Assistance in the Moment of Need
Many falls and health events can be addressed with timely non-emergency support, clinical triage or caregiver intervention, avoiding the need for an unnecessary trip to the emergency department. PERS provide access to real-time assistance in the moment of need, helping to address and prevent situations from escalating into emergencies that require costly hospital visits. In a recent PERS study, a significant number of cases, 42.1% or 113,547 adult subscribers, were able to be assisted with their care needs onsite without emergency intervention or hospitalization.
2. Prevent Hospital Readmissions After Discharge
For individuals recently discharged from the hospital, PERS devices provide peace of mind and prompt access to help if complications arise. This quick access to help can lower the risk of readmissions, which are costly for health plans and health systems and negatively impact patient outcomes and satisfaction. Researchers from Massachusetts General Hospital and Harvard Medical School conducted an IRB-approved study that demonstrated PERS, combined with predictive analytics and interventions, delivered a 68% decrease in 90-day readmissions and a 53% decrease in 180-day readmissions.
3. Enable Early Health Interventions Before Issues Escalate
With features such as automatic fall detection and clinical triage, Connect America’s PERS enable care teams or family members to intervene earlier when an incident occurs. This type of early intervention can prevent minor issues from becoming serious medical emergencies, reducing overall healthcare utilization and costs. Services such as PERS+ combine 24/7 urgent response with clinical triage and care navigation. When someone presses the button, they’re immediately connected to an urgent response center staffed with trained nurses available to help assess the situation and guide next steps — whether that means contacting a primary care provider, scheduling a telehealth visit, or simply providing reassurance.
4. Support Independent Living and Avoid Facility Costs
Personal emergency response services empower older adults to stay in their homes safely and confidently rather than moving prematurely into assisted living or skilled nursing facilities, which can come with significant expenses.
Additionally, for those living alone, PERS can help reduce feelings of isolation by connecting individuals to emergency responders or caregivers whenever needed. By addressing concerns in the moment of need, these services support aging in place, enhance independence, and reduce the emotional and financial strain that can come with transitioning to facility-based care.
5. Improve Caregiver Efficiency and Reduce In-Person Demand
For caregivers and care managers, PERS provide reassurance that those in their care can receive help at any time without constant in-person monitoring. This allows caregivers to focus resources where they are most needed, leading to more efficient care delivery and lower associated costs.
The ROI of PERS
PERS plays a crucial role in delivering better care and reducing avoidable healthcare spending. A recent analysis of PERS demonstrated an annual ROI of approximately 3.3:1. For every $1 invested in PERS, $3.30 was saved.
As healthcare providers, plans, and caregivers look to manage costs while improving outcomes, PERS offer a scalable solution that delivers real value. Whether through reducing ED visits, avoiding readmissions, or empowering seniors to stay safely at home, the impact is clear and measurable.
Interested in implementing a PERS program? Contact us to learn more about our solutions for home health, managed care, and senior living.