Did Payment Reform Lead to Patient Selection in Hip and Knee Arthroplasties? An Observational Study Using New York

Sara N Kiani1, Samuel Z Maron1, Shoshana Rosenzweig1

  • 1Leni and Peter W. May Department of Orthopaedic Surgery, Icahn School of Medicine at Mount Sinai, New York, NY, USA.

Insights

The Comprehensive Care for Joint Replacement (CJR) program did not lead to hospitals selecting healthier patients for joint replacement surgery. Instead, it coincided with lower costs and fewer discharges to post-acute care facilities.

Area of Science:

  • Health Economics
  • Orthopedic Surgery
  • Healthcare Policy

Background:

  • The Comprehensive Care for Joint Replacement (CJR) bundled payment program aims to improve value in total joint replacement (TJR).
  • Concerns exist about potential unintended consequences, such as hospitals selecting healthier patients.

Purpose of the Study:

  • To evaluate changes in patient characteristics and outcomes following CJR implementation in New York State.
  • To assess if CJR influenced hospital selection of TJR patients based on health status and age.

Main Methods:

  • Retrospective cohort study using the New York Statewide Planning and Research Cooperative System (SPARCS) database.
  • Comparison of TJR procedures before (July 2014-March 2016) and after (April 2016-December 2017) CJR implementation.
  • Difference-in-differences analysis comparing CJR and non-CJR hospitals.

Main Results:

  • CJR implementation coincided with slightly older and more comorbid TJR recipients.
  • Significant reductions in hospitalization costs and discharges to institutional post-acute care were observed.
  • No significant change in length of stay was found; some effects extended to non-Medicare patients.

Conclusions:

  • In New York State, the CJR program did not incentivize hospitals to select younger, healthier TJR patients.
  • The CJR initiative was associated with decreased hospitalization costs and reduced institutional post-acute care discharges.