Surgical Cost Disclosure May Reduce Operating Room Expenditures

Area of Science:

• Health economics
• Surgical cost analysis
• Value-based healthcare

Background:

• Rising healthcare expenditures in the US necessitate cost-containment strategies.
• Value-based payment models emphasize cost transparency to reduce spending.
• The impact of cost disclosure on surgeon behavior requires investigation.

Purpose of the Study:

• To determine if cost disclosure influences surgeons to reduce operating room expenditures.
• To analyze the effect of surgeon scorecards on rotator cuff repair costs.
• To assess surgeon interest and practice changes in response to cost data.

Main Methods:

• Surgeon scorecards reporting direct supply cost per case were distributed starting in 2012.
• Rotator cuff repair costs were analyzed quarterly over a 2-year period.
• A questionnaire assessed surgeon interest and practice modifications.

Main Results:

• Actual direct supply cost per rotator cuff repair decreased by $269.
• A strong correlation (R²=0.77) was observed between scorecard introduction and cost containment.
• Total savings amounted to $39,831; 56% of surgeons altered their practice.

Conclusions:

• Disclosure of surgical costs can be an effective method for controlling operating room spending.
• Providing physicians with surgical charge data can alter per-case expenditures.
• Surgeon scorecards demonstrate potential for cost reduction in surgical settings.