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Variability in Medicare utilization and payment among urologists.

Joan S Ko1, Heather Chalfin1, Bruce J Trock1

  • 1Department of Urology, James Buchanan Brady Urological Institute, Johns Hopkins Medical Institutions, Baltimore, MD.

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Medicare payments to urologists strongly correlate with patient visits. Standardizing service utilization could save Medicare over $125 million annually, but patient factors need further study.

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Area of Science:

  • Health Economics
  • Urology
  • Healthcare Policy

Background:

  • Medicare Provider Utilization and Payment Data (PUF) offers insights into physician payments.
  • Variability in urologist service utilization impacts overall healthcare costs.

Purpose of the Study:

  • Analyze Medicare utilization and payment variability among urologists.
  • Estimate potential cost savings from standardizing service utilization.
  • Identify limitations of the PUF for healthcare analysis.

Main Methods:

  • Utilized 2012 Medicare PUF data for 8792 urologists.
  • Employed linear regression to correlate patient visits with Medicare payments.
  • Calculated utilization variability and potential cost savings for high-reimbursement services.

Main Results:

  • Number of patient visits strongly predicted Medicare reimbursement (R² = 0.70).
  • Service utilization variability per visit showed a relative risk up to 3.52.
  • Potential cost savings estimated at $125,199,007 (9.0% of total reimbursements).

Conclusions:

  • Medicare payments to urologists are primarily driven by patient visit volume.
  • Significant variability exists in the utilization of services per patient visit.
  • Standardized utilization offers substantial Medicare cost savings, pending further analysis of patient characteristics.