Assessing the Utilization of Total Ankle Replacement in the US

Abstract

Category: Ankle Arthritis Introduction/Purpose: While total ankle arthroplasty has been shown to be a cost-effective procedure relative to conservative management and ankle arthrodesis, implant costs and complications have the potential to increase the overall financial burden of performing TAR. The purpose of this investigation is to analyze the overall cost and utilization of total ankle arthroplasty. Methods: Our analytical sample consisted of Inpatient Prospective Payment System hospitals from 2011 and 2012 Medicare claims data and the 2011-2012 Medicare Inpatient Limited Data Sets. Outcome variables of interest were the likelihood of a hospital performing TAR and the volume of TAR cases, conditional on a hospital having performed at least 1 TAR in a year. Data from the 2010 Cost Report and from Medicare inpatient claims were utilized to compute average margins for TAR cases and overall hospital margins. TAR cost was calculated based upon the all payer cost-to-charge ratio for each hospital provided by the Healthcare Cost and Utilization Project. The FY2015 Impact File was used to gather data on hospital-level characteristics, such as bed size, census region, teaching status, and urban/rural location. Hospital ownership data were obtained from the CMS Hospital Compare Database. Nationwide Inpatient Sample (NIS) data was used to generate descriptive statistics on all TAR patients. Results: Medicare participants accounted for 47.5% of the overall population of patients. Orthopaedic specialty hospitals are four times more likely to perform TAR than a non-orthopedic specialty hospital. Average implant cost was $13,034, which accounted for approximately 70% of the total all-payer cost. With respect to teaching versus non-teaching hospitals, the average cost per case is $18,331 and $19,303 respectively. Compared to nonprofitable hospitals, profitable hospitals performing TAR in 2011 had lower total costs ($14,425 vs. $19,884) and higher payments ($19,631 vs. $13,640), leading to a difference in profit of approximately $11,000 from TAR surgeries between profitable and nonprofitable hospitals. Approximately, one-third of hospitals were profitable with respect to TAR. No difference was noted with respect to length of stay or number of cases performed between profitable and nonprofitable hospitals. Conclusion: There is an overall significant financial burden associated with performing total ankle replacement with many health systems failing to demonstrate profitability despite its increased utilization. Profitable hospitals are more likely to have lower cost per day and prosthesis costs and higher payments compared to nonprofitable hospitals. While additional factors such as improved patient outcomes are driving utilization of TAR, financial barriers exist that can affect utilization of TAR across health systems.