An Analysis of Leading, Lagging, and Coincident Economic Indicators in the United States and Its Relationship to the Volume of Plastic Surgery Procedures Performed

Abstract

As physician compensation and reimbursement tightens throughout the United States, it is important for physicians to be aware of the influence that the economic environment has on the unique medical field of plastic and reconstructive surgery. This study will attempt to determine a relationship between the volume of different plastic surgical procedures and various economic indicators. Information from the American Society of Plastic Surgeons' annual reports on plastic surgery statistics available on the Internet (http://www.plasticsurgery.org/Media/Statistics.html) was collected from the years 2000 through 2011. Yearly economic indicators were collected from readily available Web sites. In terms of the total number of plastic surgery procedures performed, there was a significant positive relationship with GDP, GDP per capita, personal income, consumer price index (CPI) (all), and CPI (medical), and a significant negative relationship with the issuance of new home permits. There was a significant positive relationship with total cosmetic procedures and GDP, GDP per capita, personal income, CPI (all), and CPI (medical), and a significant negative relationship with the issuance of new home permits. There was a significant positive relationship between cosmetic surgical procedures and the issuance of new home permits and the average prime rate charged by banks. There was a significant positive relationship with cosmetic minimally invasive procedures and GDP, GDP per capita, personal income, CPI (all), and CPI (medical), and a significant negative relationship with the issuance of new home permits. There was a significant negative relationship between reconstructive procedures and GDP, GDP per capita, personal income, CPI (all), and CPI (medical). Cosmetic minimally invasive procedures involve less downtime, are generally less expensive than surgical options, and are widely available, making it easier for patients to decide on them quickly during good economic times. Furthermore, it is apparent that plastic surgeons must be proficient at performing minimally invasive cosmetic procedures to maintain a clientele and offer patients a more affordable option during tough economic times. This may lead to further business growth during more favorable economic times.