Demand matching: balancing cost and quality to maximize greatest postoperative outcomes

Orthopedic hip and knee implant costs have risen 132 percent from 1991 to 2004, whereas reimbursements have only risen 16 percent. This increase is large, but the problem would not be as significant if reimbursement rates could compete with these increases. Medicare reimbursement has decreased 35 percent over the same time period. Health care professionals may not be able to change reimbursement methodologies, but we can offer cost-saving ideas to help balance out the equation. Although the primary purpose of demand matching is to improve implant selection based upon patient needs, it can also be used to help contain costs.