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Comparing Trends in Medicare Reimbursement and Inflation within Plastic Surgery Subspecialties.

Victoria Stoffel1, Jalene Y Shim2, Salvatore J Pacella3

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Medicare reimbursement for plastic surgery subspecialties has declined significantly when adjusted for inflation. Microsurgery and craniofacial surgery experienced the steepest drops, potentially impacting patient access and practice patterns.

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Area of Science:

  • Plastic Surgery
  • Health Economics
  • Surgical Reimbursement

Background:

  • Medicare reimbursement rates have stagnated over the last decade, failing to keep pace with inflation across surgical specialties.
  • Internal comparisons within plastic surgery subspecialties regarding reimbursement trends have not been previously conducted.

Purpose of the Study:

  • To investigate reimbursement trends from 2010 to 2020 within plastic surgery.
  • To compare these trends across various plastic surgery subspecialties.

Main Methods:

  • Extracted annual case volumes for top CPT codes from the Physician/Supplier Procedure Summary.
  • Classified codes into microsurgery, craniofacial surgery, breast surgery, hand surgery, and general plastic surgery.
  • Calculated inflation-adjusted growth and compound annual growth rates of Medicare physician reimbursement, weighted by case volume.

Main Results:

  • Overall inflation-adjusted reimbursement growth was -13.5%.
  • Microsurgery and craniofacial surgery showed the largest decreases (-19.2% and -17.6%, respectively) and lowest compound annual growth rates.
  • Despite declining reimbursement, microsurgery and craniofacial surgery saw annual increases in case volumes of 3% and 5%, respectively.

Conclusions:

  • All plastic surgery subspecialties experienced a decrease in inflation-adjusted reimbursement growth.
  • Craniofacial surgery and microsurgery were particularly affected, with potential negative impacts on practice patterns and patient access.
  • Increased physician advocacy and participation in reimbursement negotiations are crucial to address these trends.