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Sources of Hospital Variation in Postacute Care Spending After Cardiac Surgery
Michael P Thompson1,2, Monica L Yost1, John D Syrjamaki1
1Michigan Value Collaborative (M.P.T., M.L.Y., J.D.S., E.C.N.), University of Michigan, Ann Arbor.
Insights
Postacute care spending after cardiac surgery varies widely between hospitals, mainly due to differences in facility-based care. Optimizing this care can reduce unwarranted spending variations.
Area of Science:
- Health Economics
- Cardiac Surgery Outcomes
- Healthcare Management
Background:
- Postacute care significantly impacts cardiac surgical episode spending.
- Sources of variation in postacute care spending remain underexplored.
Purpose of the Study:
- Identify sources of variation in 90-day postacute care spending after coronary artery bypass grafting (CABG) and aortic valve replacement (AVR).
- Examine the relationship between postacute care spending and other postdischarge utilization.
Main Methods:
- Retrospective analysis of administrative claims for Medicare and commercial insurance in Michigan (2015-2018).
- Included patients undergoing CABG (n=11,208) or AVR (n=6122) across 33 hospitals.
- Analyzed postacute care use, spending, and correlation with other healthcare utilization.
Main Results:
- Postacute care was used in 86.2% of CABG and 69.3% of AVR episodes.
- Mean 90-day spending was $4398±$6124 for CABG and $3465±$5759 for AVR.
- Inpatient rehabilitation and skilled nursing facilities drove over 80% of spending variation between hospitals.
- Spending on readmissions, ED visits, and outpatient care differed significantly between low and high postacute care spending hospitals.
Conclusions:
- Significant hospital-level variation exists in postacute care spending following cardiac surgery.
- Differential use and intensity of facility-based postacute care are primary drivers of this variation.
- Targeting facility-based postacute care presents an opportunity to reduce unwarranted spending variation.
Background:
Postacute care is a major driver of cardiac surgical episode spending, but the sources of variation in spending have not been explored. The objective of this study was to identify sources of variation in postacute care spending within 90-days of discharge following coronary artery bypass grafting (CABG) and aortic valve replacement (AVR) and the relationship between postacute care spending and other postdischarge utilization.
Methods And Results:
A retrospective analysis was conducted of public and private administrative claims for Michigan residents insured by Medicare fee-for-service and Blue Cross Blue Shield of Michigan/Blue Care Network commercial and Medicare Advantage plans undergoing CABG (n=11 208) or AVR (n=6122) in 33 nonfederal acute care Michigan hospitals between January 1, 2015 and December 31, 2018. Postacute care use was present in 9662 (86.2%) CABG episodes and 4242 (69.3%) AVR episodes, with respective mean (SD) 90-day spending of $4398±$6124 and $3465±$5759. Across hospitals, mean postacute care spending ranged from $3280 to $8186 for CABG and $2246 to $7710 for AVR. Inpatient rehabilitation and skilled nursing facility care accounted for over 80% of the variation spending between low and high postacute care spending hospitals. At the hospital-level, postacute care spending was modestly correlated across procedures and payers. Spending associated with readmissions, emergency department visits, and outpatient facility care was significantly different between low and high postacute care spending hospitals in CABG and AVR episodes.
Conclusions:
There was wide hospital variation in postacute care spending after cardiac surgery, which was primarily driven by differential use and intensity in facility-based postacute care. Optimizing facility-based postacute care after cardiac surgery offers unique opportunities to reduce potentially unwarranted care variation.
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