An initiative to treat people in the community or at home in Essex has been extended by six months.
Crisis Response Service (CRS) has in the past six months arranged treatment for 408 patients that would have been admitted to Colchester Hospital.
The service, primarily for elderly patients with multiple long-term conditions, saved money for the NHS.
The CRS is managed by Anglian Community Enterprise (ACE), in partnership with a number of agencies and hospitals.
David Cohen, assistant director at ACE, said: "This is a co-ordinated approach to offer the most appropriate care to people.
"It has the dual advantage of benefiting the individual who doesn't have to go into hospital, as well as relieving the pressure on hospital beds."