Costs for Early Birth Unbelievably High

Health Enhancement Newsletter
Matria Healthcare
Published October 2004

While only 10 percent of women who become pregnant develop complications requiring hospitalization, the staggering costs for early delivery are much higher than the average human resources executive usually realizes.

That is because infants born prematurely must be hospitalized in neonatal intensive care units for weeks or even months at a time until they are strong enough to live on their own. As a result, the average cost for a preterm infant is $75,000, not even close to the usual $1,300 most companies expect to pay on average for a normal infant, according to the March of Dimes.

Hospitalization costs for women with high-risk pregnancies are already high enough to raise eyebrows at $36 million annually in the United States, according to the Emory Center on Health Outcomes and Quality. But that amount seems tame when compared to the $5 billion spent to hospitalize newborn infants in neonatal intensive care units.[1]

What's even more alarming is that some babies can cost millions of dollars to a company if they are born early enough.[2] A baby born just a few weeks shy of the ideal gestation period of 37 weeks could cost as little as $4,733 while an infant born eight weeks early could blow that cost to $49,540.[3] Back the birth up a few more weeks, and the baby could ring up a $1 million bill, and that does not include the 25 percent of the youngest and smallest babies who suffer from long-term health problems after they are released from the hospital.

Birth weight also plays a significant factor in cost. For instance, a baby born at just a moderately low birth weight could cost 46 percent more than an infant born at a normal birth weight.[4]

What Can Be Done?

Despite medical advancements over the years, the incidence rate of preterm births has remained the same.[5] As a result, medical experts have determined that the approach to addressing preterm births is to prolong the pregnancy as long as possible since each week a baby remains in the womb makes a major difference in its health and treatment costs.

Research shows that preterm management programs offering outpatient management of women at risk for premature delivery, expanded patient education and monitoring through regular telephone calls by obstetric nurses and improved screening help reduce pregnancy related hospitalizations.

Matria has the only national preterm labor management program with more than 18 years of experience in this highly specialized medical area, with 37 call centers and a home monitoring service that includes an at-home therapy to stop early contractions and avoid hospitalization.

In a study conducted on patients from a major Midwest-based HMO using actual patient claims data, Matria's preterm labor program was measured against a control group. Matria's group experienced longer gestation periods, higher birth weights, shorter infant hospitalizations, less frequent admissions to neonatal intensive care units and an average savings per pregnancy of $14,500.[6]

[1] Journal of the American Osteopathic Association, "Clinical review of home uterine activity monitory, February 2001.

[2] Ibid.

[3] Managed Care, "Telemedicine: cost-effective management of high-risk pregnancy", November 2001.

[4] Ibid.

[5] Journal of the American Osteopathic Association, "Clinical review of home uterine activity monitory, February 2001.

[6] Managed Care, "Telemedicine: cost-effective management of high-risk pregnancy", November 2001.