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Published on: February 27, 2018
Do higher-volume hospitals provide better value in revision hip and knee arthroplasty?
N B Frisch1, P M Courtney2, B Darrith3
1DeClaire LaMacchia Orthopaedic Institute, 1136 W. University Dr. Suite 450, Rochester, Michigan, 48307, USA.
Insights
Higher volume hospitals perform more revision hip and knee arthroplasties and are less likely to be high-cost outliers. However, they may have higher Medicare reimbursements due to increased case complexity.
Area of Science:
- Orthopedic surgery
- Health economics
Background:
- Revision hip and knee arthroplasties are complex procedures.
- Hospital volume is a potential factor influencing costs and outcomes.
Purpose of the Study:
- To determine if higher volume hospitals have lower costs in revision hip and knee arthroplasty.
Main Methods:
- Analysis of 29,580 revision arthroplasties from 789 hospitals using 2014 CMS Inpatient Charge Data.
- Hospitals dichotomized into high-volume (>50 cases/year) and low-volume.
- Comparison of hospital charges, Medicare payments, and patient satisfaction scores.
Main Results:
- High-volume hospitals performed 51% of all revision cases, including 98% of the most complex DRG 466 cases.
- No significant difference in total hospital charges, but higher Medicare payments for specific DRGs in high-volume hospitals.
- High-volume hospitals had better CMS star ratings and were less likely to be upper quartile Medicare cost outliers for DRG 467 and 468.
Conclusions:
- Higher volume hospitals are less likely to be high-cost outliers in revision arthroplasty.
- Increased Medicare reimbursements in high-volume centers may reflect greater case complexity.
- Further research needed on cost-saving measures for revision total joint arthroplasties.
Aims:
The purpose of this study is to determine if higher volume hospitals have lower costs in revision hip and knee arthroplasty.
Materials And Methods:
We questioned the Centres for Medicare and Medicaid Services (CMS) Inpatient Charge Data and identified 789 hospitals performing a total of 29 580 revision arthroplasties in 2014. Centres were dichotomised into high-volume (performing over 50 revision cases per year) and low-volume. Mean total hospital-specific charges and inpatient payments were obtained from the database and stratified based on Diagnosis Related Group (DRG) codes. Patient satisfaction scores were obtained from the multiyear CMS Hospital Compare database.
Results:
High-volume hospitals comprised 178 (30%) of the total but performed 15 068 (51%) of all revision cases, including 509 of 522 (98%) of the most complex DRG 466 cases. While high-volume hospitals had higher Medicare inpatient payments for DRG 467 ($21 458 versus $20 632, p = 0.038) and DRG 468 ($17 003 versus $16 120, p = 0.011), there was no difference in hospital specific charges between the groups. Higher-volume facilities had a better CMS hospital star rating (3.63 versus 3.35, p < 0.001). When controlling for hospital geographic and demographic factors, high-volume revision hospitals are less likely to be in the upper quartile of inpatient Medicare costs for DRG 467 (odds ratio (OR) 0.593, 95% confidence intervals (CI) 0.374 to 0.941, p = 0.026) and DRG 468 (OR 0.451, 95% CI 0.297 to 0.687, p < 0.001).
Conclusion:
While a high-volume hospital is less likely to be a high cost outlier, the higher mean Medicare reimbursements at these facilities may be due to increased case complexity. Further study should focus on measures for cost savings in revision total joint arthroplasties. Cite this article: Bone Joint J 2017;99-B:1611-17.
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