Variation in congenital heart surgery costs across hospitals

Sara K Pasquali1, Marshall L Jacobs, Xia He

  • 1Department of Pediatrics and Communicable Diseases, University of Michigan C.S. Mott Children's Hospital, Ann Arbor, Michigan;

Pediatrics
|February 26, 2014
PubMed

Insights

Hospital costs for congenital heart surgery vary widely, with complexity, length of stay, and complication rates driving differences. High-volume centers show lower costs for complex procedures.

Area of Science:

  • Pediatric Cardiac Surgery
  • Health Economics
  • Healthcare Quality Improvement

Background:

  • Rising pressure on children's hospitals to enhance quality and reduce costs.
  • Need for better understanding of costs for resource-intense conditions like congenital heart disease.

Purpose of the Study:

  • Describe costs for common congenital cardiac operations.
  • Assess hospital-level cost variation for these procedures.

Main Methods:

  • Linked clinical registry data with administrative utilization data.
  • Calculated costs per case for 9 operations of varying complexity (2006-2010).
  • Used Bayesian methods to assess between-hospital cost variation, adjusting for patient factors.

Main Results:

  • Median cost per case increased with operation complexity, from $25,499 (atrial septal defect repair) to $165,168 (Norwood operation).
  • Observed significant between-hospital cost variation (up to ninefold) after adjustment.
  • Length of stay and complication rates explained 28% of cost variation; complex operations showed higher LOS and complication rates in high-cost hospitals.
  • High-volume hospitals demonstrated lower costs for the most complex operations.

Conclusions:

  • Established benchmarks for hospital costs in congenital heart operations.
  • Demonstrated wide hospital-level variability in costs, partly due to length of stay and complication rates.
  • Findings can inform initiatives to improve care quality and reduce costs in pediatric cardiac surgery.
Abstract