Physician work effort and reimbursement for ruptured abdominal aortic aneurysms

Abstract

Two major flaws have been previously identified in the resource-based relative value scale (RBRVS): (1) inaccurate estimation of physician work effort; and (2) RBRVS compression, which results in undervaluation of major surgical procedures. The impact of RBRVS for physicians treating patients with ruptured abdominal aortic aneurysms (RAAAs) has not been previously reported and is important owing to the severity of the illness, the potential to quantitate actual work effort, and the high percentage of these patients covered by Medicare. All patients were studied who underwent surgery for RAAAs during a 5-year period encompassing the implementation of RBRVS. Analysis included all physician services including vascular surgeons, anesthesiologists, and all other medical specialists. Total work effort was quantitated for each specialty in minutes/patient. The financial data were obtained by reviewing all professional bills and reimbursements. Cost of service was calculated to include physician compensation, practice overhead costs, and malpractice expenses. In all, 84 patients underwent repair of a RAAA with a mortality rate of 42%. Medicare was the primary insurance for 87% of patients. The cost of service exceeded the reimbursement by 50% for vascular surgeons, resulting in an average loss of $1,593/patient. Actual operative time represented only 24% of total surgical work effort. Early death and a length of stay (LOS) < or = 1 day for 24 patients resulted in a reimbursement rate of $5.98/minute for surgeons. This gain was significantly offset by 30 patients with a LOS > or = 14 days, resulting in a reimbursement rate of $1.94/minute for vascular surgeons. Over the 5-year period there was a trend of decreasing reimbursement for vascular surgeons (P <0.005) but not other physicians. Vascular surgeons incurred a 28% decrease in reimbursement over the study period. Physician reimbursement under RBRVS for the treatment of patients with RAAAs is inadequate to cover the costs of providing this care. Reimbursement trends and potential changes to the practice component of the RBRVS will further aggravate the losses involved in caring for these very ill patients. Vascular surgeons must continue to provide input to the Health Care Financing Administration to help correct inequities built into RBRVS.