Wide Provider Variation in Cost for Thyroidectomy: Potential Benefits of Standardizing Practice?

Area of Science:

• Health Economics
• Surgical Outcomes Research

Background:

• Rising healthcare expenditure necessitates cost control in surgical procedures.
• Provider variation in surgical costs is a key area for cost-containment strategies.
• Limited research exists on cost variations for thyroidectomy procedures.

Purpose of the Study:

• To identify and quantify provider-level variation in surgical costs for thyroidectomy.
• To examine factors contributing to cost differences among surgeons performing thyroidectomies.

Main Methods:

• Retrospective analysis of 921 total thyroidectomies.
• Data collected from surgeons at a single institution (September 2011 - July 2016).
• Utilized Change Healthcare Performance Analytics Program data.

Main Results:

• Significant variation in mean costs per provider, ranging from $4,293 to $15,529.
• Wide variation in length of stay (0-6 days) among providers.
• Higher costs were associated with increased anesthesia and laboratory fees.

Conclusions:

• Substantial provider variation in thyroidectomy costs exists within the same academic institution.
• Some surgeons incur up to three times higher costs for the same procedure.
• Implementing institutional standards of practice can reduce cost variation and improve efficiency.