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Published on: August 4, 2022
Health Care Utilization and Costs in the Year Before and After Total Hip Arthroplasty
Elizabeth A Abe1, Nihir Parikh1, Daniel A Nemirov1
1Rothman Orthopaedic Institute at Thomas Jefferson University, Philadelphia, Pennsylvania.
Insights
Total hip arthroplasty (THA) significantly reduces healthcare costs in the year after surgery compared to nonoperative treatments. This finding highlights THA
Area of Science:
- Orthopedic surgery
- Health economics
- Value-based care
Background:
- Value-based care models emphasize cost reduction in total hip arthroplasty (THA).
- Limited research exists on the longitudinal costs of nonoperative treatments versus THA.
- Understanding THA's impact on long-term spending is crucial for healthcare policy.
Purpose of the Study:
- To determine the healthcare costs for THA patients in the year preceding and the year following the procedure.
- To evaluate the cost-effectiveness of THA as a longitudinal spending management strategy.
Main Methods:
- Analysis of 12,240 primary THA patients (2020-2023) based on insurance claims.
- Stratification of preoperative costs: office visits, corticosteroid injections, physical therapy (PT), diagnostic imaging.
- Calculation of 1-year postoperative costs: office visits, PT, imaging, emergency visits, dislocations, revision THA.
Main Results:
- Patients receiving nonoperative treatments (corticosteroid injections, PT) pre-THA incurred higher costs.
- These costs were elevated regardless of the primary insurance payer.
- Post-THA, patients experienced significant reductions in healthcare claims costs.
Conclusions:
- Total hip arthroplasty (THA) resulted in at least $250 less in claims costs within one year compared to prior nonoperative care.
- THA demonstrates cost-efficacy, supporting its consideration in value-based care models for osteoarthritis management.
- Policymakers should recognize THA's financial benefits for long-term osteoarthritis treatment strategies.
Background:
In the era of value-based care, cost-reduction strategies for total hip arthroplasty (THA) have focused on surgical bundles and reductions in postacute care spending. Few studies have evaluated the costs of nonoperative treatment and the impact of THA as a cost-saving measure for longitudinal spending. The purpose of this study was to determine the costs of care for THA patients in the year before and the year following THA.
Methods:
This study reviewed a consecutive series of 12,240 primary THA patients from 2020 to 2023. Preoperative health care utilization and associated costs were stratified by primary payer claims and included office visits, corticosteroid injections, physical therapy (PT), and diagnostic imaging. Similarly, 1-year postoperative costs were calculated and included office visits, PT, x-rays, magnetic resonance imaging, emergency department visits, prosthetic dislocations, and all-cause revision THA.
Results:
There were 5,394 (44.1%) patients who had commercial insurance, 1,952 (15.9%) with Medicare Advantage; 4,615 (37.7%) with Medicare; and 279 (2.3%) self-pay. In the year before THA, patients who received one or more nonoperative treatments, consisting of corticosteroid injections and PT, had significantly increased costs of care when compared to patients who did not, regardless of primary payer. In the year following THA, these patients experienced significant cost reductions.
Conclusions:
In the year following THA, patients had at least $250 less in claims costs when compared to those of nonoperative treatment in the year prior. Policy makers should be aware of the cost-efficacy of THA when contemplating longitudinal value-based care models for the management of osteoarthritis.
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