Impact of the Maryland Global Budget Revenue Program on Lobectomies for Lung Cancer

Abstract

INTRODUCTION: In 2014, Maryland introduced a “Global Budget Revenue” (GBR) program in an effort to reduce hospital costs by prospectively capping annual hospital revenue at a predetermined amount, thereby incentivizing hospitals to reduce expenditures while maintaining quality. Our objective was to investigate the impact of the GBR model on thoracic surgery outcomes. METHODS: We used the Maryland Health Services Cost Review Commission (HSCRC) database to retrospectively review adult patients who underwent lobectomy for primary lung cancer between 2012 and 2018. Patients were dichotomized as “pre-GBR” if they underwent lobectomy prior to 2014, and “post-GBR” if they underwent lobectomy in 2014 or later. RESULTS: Baseline demographics between the two groups were comparable, although patients in the post-GBR group were less likely to be uninsured (0.2% vs 1.1%, p < 0.01). In-hospital mortality was similar between the two groups (1.0% vs 1.5%, p = 0.20), as was 30-day readmission rate (8.2% vs 7.9%, p = 0.80). On average, patients in the post-GBR era had a shorter length of stay (5.7 days vs 6.1 days, p = 0.02), but were more likely to be discharged with home health services (23.4% vs 19.5%, p = 0.01). CONCLUSION: These results suggest successful incentivization to reduce hospital length of stay with implementation of the GBR model, without evidence of inadvertent negative consequences such as increased mortality or need for readmission. The increased use of home health services suggest a multi-disciplinary approach will be integral to reducing overall health expenditures under this model, and demonstrates promise for use of the GBR model in thoracic surgery.