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Published on: June 14, 2015
Development of a charge adjustment model for cardiac catheterization
Andrew Brennan1, Kimberlee Gauvreau, Jean Connor
1Department of Cardiology, Children's Hospital Boston, Harvard Medical School, 300 Longwood Avenue, Boston, MA, 02115, USA.
Insights
A new Catheterization Charge Categories (CCC) system was developed to compare costs for congenital heart disease catheterization. This financial grouper accurately reflects diverse patient cases and can be used for institutional comparisons.
Area of Science:
- Cardiology
- Health Economics
- Medical Informatics
Background:
- Lack of standardized methodology for comparing catheterization costs in congenital heart disease.
- Existing financial metrics do not correlate well with procedure complexity.
Purpose of the Study:
- Develop and validate a financial grouper for catheterization procedures in congenital heart disease.
- Enable standardized cost comparisons across institutions.
Main Methods:
- Linked catheterization database with hospital charges (FY 2008-2010).
- Developed Catheterization Charge Categories (CCC) using empiric data and expert consensus.
- Created a multivariable model including CCC, patient, and procedural characteristics.
Main Results:
- Categorized 40 procedure types into 7 CCC, explaining 72.6% of charge variation.
- Largest categories: CCC 2 (diagnostic, 34%) and CCC 1 (biopsy, 12%).
- Final model (CCC, interventions, diagnosis) explained 74.2% of charge variation.
Conclusions:
- Developed a novel financial grouper (CCC) for congenital heart disease catheterization.
- CCC and the multivariable model facilitate understanding and comparison of financial data.
- This tool accounts for diverse patient populations and procedure types.
Abstract:
A methodology that would allow for comparison of charges across institutions has not been developed for catheterization in congenital heart disease. A single institution catheterization database with prospectively collected case characteristics was linked to hospital charges related and limited to an episode of care in the catheterization laboratory for fiscal years 2008-2010. Catheterization charge categories (CCC) were developed to group types of catheterization procedures using a combination of empiric data and expert consensus. A multivariable model with outcome charges was created using CCC and additional patient and procedural characteristics. In 3 fiscal years, 3,839 cases were available for analysis. Forty catheterization procedure types were categorized into 7 CCC yielding a grouper variable with an R (2) explanatory value of 72.6%. In the final CCC, the largest proportion of cases was in CCC 2 (34%), which included diagnostic cases without intervention. Biopsy cases were isolated in CCC 1 (12%), and percutaneous pulmonary valve placement alone made up CCC 7 (2%). The final model included CCC, number of interventions, and cardiac diagnosis (R (2) = 74.2%). Additionally, current financial metrics such as APR-DRG severity of illness and case mix index demonstrated a lack of correlation with CCC. We have developed a catheterization procedure type financial grouper that accounts for the diverse case population encountered in catheterization for congenital heart disease. CCC and our multivariable model could be used to understand financial characteristics of a population at a single point in time, longitudinally, and to compare populations.
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