Medicare Reimbursement Trends for Common Hip Arthroplasty Procedures: A Generational Perspective, 2006 to 2024

This study aimed to assess the trends in Medicare reimbursement for common hip arthroplasty procedures from 2006 to 2024.

This study analyzed data from the Centers for Medicare & Medicaid Services (CMS) Physician Fee Schedule from 2006 to 2024 to identify payment trends for the most common orthopaedic procedures related to hip arthroplasty. The study calculated Medicare reimbursement by multiplying relative value units by a Centers for Medicare & Medicaid Services-determined conversion factor and adjusted reimbursement rates for inflation to 2024 U.S. dollars using the Consumer Price Index inflation calculator from the U.S. Department of Labor. Projections for future trends were derived from mean values from 2020 to 2024, with data visualizations created in Microsoft Excel.

From 2006 to 2024, total reimbursements for medical procedures dropped by 0.1%, while the Consumer Price Index increased by 55%. This caused the average reimbursement to fall by 35.5%. The biggest decrease was in primary total hip arthroplasty reimbursement, which fell by 40.7%. Additionally, the unadjusted work reimbursement rate for all procedures went down by 6.1%, resulting in a substantial inflation-adjusted decrease of 39.4%. If these trends continue, projections for 2029 suggest an additional projected decline in surgeon reimbursement of 33 to 42%, and work reimbursements could drop by 40 to 50%.

From 2006 to 2024, inflation-adjusted Medicare reimbursement for hip arthroplasty has dropped markedly, challenging orthopaedic practices' sustainability. This may lead health care providers to see more patients, risking burnout and affecting patient outcomes. Compensation for orthopaedic surgeons should reflect the patient value added. However, this study demonstrates a progressive decrease in physician reimbursement, which could lead to an unneeded financial burden on orthopaedic practices. The focus should be on advocating for better reimbursement policies to maintain practice integrity rather than just increasing patient volume.