Health care policy and arthroscopic rotator cuff repair prices in the United States

Abstract

BackgroundArthroscopic rotator cuff repair (ARCR) is one of the most common orthopedic procedures in the general population. Despite its prevalence, the price of ARCR varies significantly across regions, hospital models, and settings. The purpose of this study was to examine the effect of Geographic Region, Certificate of Need (CON) laws, and Medicaid expansion on ARCR pricing. MethodsThis cross-sectional observational study utilized hospital payer-specific ARCR prices from the Turquoise Health Database using CPT code 29827. These prices are negotiated rates or charges that hospitals establish with various payers, including insurance companies, Medicare, Medicaid, and self-pay patients, for medical services and treatments provided. Outliers below the 10th percentile and above the 90th percentile were excluded. State policies, including CON status and Medicaid expansion, were obtained from public sources, while additional socioeconomic and demographic data were sourced from the US Census. The state's region classification was determined based on one of four Geographic Regions defined by the US Census Bureau. A detailed analysis was also conducted for North Carolina, examining county-level data on urbanization and the Area Deprivation Index (ADI). ResultsThere were 57,270 ARCR prices from 2,503 hospitals across the United States, with a median interquartile range (IQR) listed price of $6,428.17 (IQR: $2,886.88). States with CON regulations had significantly lower ARCR prices compared to those without ($6,500 vs. $8,000, p<0.0001). Multivariable analysis indicated that hospitals in the Northeast and West Regions listed significantly higher prices for ARCR compared to those in the Midwest Region (p<0.0001). In contrast, hospitals in the South Region listed lower prices for ARCR compared to those in the Midwest Region (p<0.0001). Medicaid expansion was associated with increased ARCR prices (p<0.0001), while CON laws were linked to reduced prices (p< .0001). In North Carolina, ADI and urbanization status did not significantly affect ARCR prices. ConclusionThe prices listed for ARCR varied significantly depending on the Geographic Region where hospitals were located. Additionally, CON laws were associated with reduced ARCR prices, while Medicaid expansion correlated with increased prices. These findings highlight the complex interplay between healthcare policy, regulatory frameworks, and socioeconomic factors in determining surgical prices.