Cutting the hospital stay of 30,000 patients in the last stages of life by just four days could save the NHS £34 million, a charity has said.
Figures suggest 63% of all people want to die at home but only one in five (21%) actually do.
Marie Curie Cancer Care estimates that cutting the hospital stays of just 12% of all people who currently die in hospital in England each year could save the NHS millions.
At present, some 53% of all deaths happen in hospital - in 2010 this meant 245,570 people died there.
Imelda Redmond, director of policy and public affairs at the charity, said: “The NHS has to save £20 billion by 2015.
“Savings on the scale required can only be achieved through service redesign that can be rapidly implemented across the NHS.
“Ensuring that more people who are terminally ill are able to be cared for and die at home can release funds.
“Even small reductions in the number of days people at the end of life spend in hospital can lead to substantial savings.”
A Department of Health spokesman said: “We are committed to giving people more choice and control over the care they receive at the end of life and, in particular, to support people to be cared for and die at home.
“We are pushing forward with implementation of the End of Life Care Strategy, which will help deliver