1. Payments for outpatient joint replacement surgery: A comparison of hospital outpatient departments and ambulatory surgery centers
- Author
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Carey, Kathleen and Morgan, Jake R.
- Subjects
United States. Medicare Payment Advisory Commission ,Hospitals -- Comparative analysis ,Property and casualty insurance industry -- Comparative analysis ,Knee replacement arthroplasty -- Comparative analysis ,Hip replacement arthroplasty -- Comparative analysis ,Prospective payment systems (Medical care) -- Comparative analysis ,Surgical clinics -- Comparative analysis ,Prostheses and implants ,Insurance ,Data collection ,Orthopedic surgery ,Time ,Setting (Literature) ,Joint replacement ,Business ,Health care industry - Abstract
Objective: To compare commercial insurance payments for outpatient total knee and hip replacement surgeries performed in hospital outpatient departments (HOPDs) and in ambulatory surgery centers (ASCs). Data Sources: A large national claims database that contains information on actual prices paid to providers over the period 2014-2017. Data Collection: We identified all patients receiving total knee replacement surgery and total hip replacement surgery in HOPDs and in ASCs for each of the 4 years. Study Design: For each year, we conducted descriptive and statistical patient-level analyses of the facility component of payments to HOPDs and to ASCs. Principal Findings: For each procedure and for each year, ASC payments exceeded HOPD payments by a wide margin; however, the gap across settings declined over time. In 2014, knee replacement payments to HOPDs (n = 67) were $6016 compared to $23 244 in ASCs (n = 68). By 2017, payments to HOPDs (n = 223) had grown to $10 060 compared to $18 234 in ASCs (n = 602). Similarly, for hip replacements, HOPD payments (n = 43) rose from $6980 in 2014 to $11139 in 2017 (n = 206) and in ASCs fell from $28 485 in 2014 (n = 82) to $18 595 in 2017 (n = 465). Conclusions: Results suggest that for total joint replacement, common perceptions of cost savings from transition of services from hospitals to ASCs may be misguided. KEYWORDS ambulatory surgery centers, hospitals, joint replacement, outpatient, payments, 1 | INTRODUCTION Reorganization of health care delivery is a key factor in recent efforts to constrain the growing cost of health care in the United States. Surgery, a costly [...]
- Published
- 2020
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