A new study from Mount Sinai Hospital said hospice patients have lower Medicare costs compared to hospitalized patients.

Hospice care is mostly for people in the final months of their life. It supports the lives of these individuals and their families.

The National Hospice and Palliative Care Organization or NHPCO said the study shows the value of hospice care through high quality service and cost savings.

Christy Whitney is the President and CEO of the local hospice care and said the care her company provides saves families thousands of dollars, “Hospice saves Medicare on average about 2,500 per patient who is on hospice vs. conventional care.”

Whitney also said the reason costs are low is due to the type of care a patient receives.

While hospitals charge money for treatment solutions or life saving tests, the focus of hospice is on the joys of life's comforts.

The facility offers spas, large family rooms and dining.

In 2011, the NHPCO also reported that 84% of the hospice care was paid through Medicare hospice benefit.

That 84% was also part of the 44% of dying Americans.

Other studies about hospice from Duke University in 2007 have also stated that hospice care saves the federal Medicare system money.