Hospice industry generates $142 million for Puerto Rico’s economy, study finds
By THE STAR STAFF
A new analysis by Estudios Técnicos, Inc. (ETI) reveals that Puerto Rico’s hospice industry is not only improving end‑of‑life care for patients with chronic and terminal illnesses but also delivering a significant $142 million economic boost to the island’s economy. The study, conducted in partnership with Grace Health Puerto Rico, is the first comprehensive examination of the hospice sector in the territory.
According to ETI president Graham Castillo, hospice services make more efficient use of medical resources by reducing prolonged hospitalizations and intensive interventions in the final stage of life. Using the Planning Board’s input-output model, the study estimates that hospice activity supports 1,417 direct, indirect, and induced jobs, generates $48 million in annual payroll, and contributes $14 million in fiscal revenue.
“The activity associated with the services of hospice generates approximately $142 million in economic activity,” Castillo said, noting that the model shows clear economic and operational efficiencies.
Grace Health Puerto Rico executive director Ana Beatriz Torres emphasized the sector’s importance amid the island’s aging population, high prevalence of chronic disease, and fiscal constraints. She noted that hospice care improves quality of life, reduces unnecessary medical interventions, and eases the burden on families and caregivers.
Torres also highlighted a gap in utilization: in 2022, only 21.36% of Medicare beneficiaries in Puerto Rico died while enrolled in a hospice program, despite many meeting eligibility criteria. Cultural tendencies toward aggressive end‑of‑life treatment, she said, continue to limit broader adoption.
The study found that hospice services are covered by traditional Medicare, Medicare Advantage, the government’s Vital plan, and several commercial insurers. It also documented improvements in patient well‑being and positive economic effects for families who receive coordinated support at home.
ETI’s director of social analysis, Anitza Cox Marrero, underscored the cost‑benefit findings: for every dollar invested in hospice services, the island sees $1.19 in benefits, representing a net gain of $24.4 million.
The report integrates secondary data analysis, interviews with key informants, focus groups with families, and an economic impact model. It concludes that hospice care—delivered by interdisciplinary teams including physicians, nurses, social workers, and chaplains—offers a dignified, coordinated, and cost‑effective alternative for patients in advanced stages of illness.
With more than 52% of Puerto Rico’s adults living with at least one chronic condition, the study’s authors argue that understanding and expanding hospice options will be increasingly critical for the island’s health system.
Comments