Abstract
BackgroundThe numbers of people requiring total arthroplasty is expected to increase substantially over the next two decades. However, increasing costs and new payment models in the USA have created a sustainability gap. Ad hoc interventions have reported marginal cost reduction, but it has become clear that sustainability lies only in complete restructuring of care delivery. The Perioperative Surgical Home (PSH) model, a patient-centered and physician-led multidisciplinary system of coordinated care, was implemented at UC Irvine Health in 2012 for patients undergoing primary elective total knee arthroplasty (TKA) or total hip arthroplasty (THA). This observational study examines the costs associated with this initiative.MethodsThe direct cost of materials and services (excluding professional fees and implants) for a random index sample following the Total Joint-PSH pathway was used to calculate per diem cost. Cost of orthopedic implants was calculated based on audit-verified direct cost data. Operating room and post-anesthesia care unit time-based costs were calculated for each case and analyzed for variation. Benchmark cost data were obtained from literature search. Data are presented as mean ± SD (coefficient of variation) where possible.ResultsTotal per diem cost was $10,042 ± 1,305 (13%) for TKA and $9,952 ± 1,294 (13%) for THA. Literature-reported benchmark per diem cost was $17,588 for TKA and $16,267 for THA. Implant cost was $7,482 ± 4,050 (54%) for TKA and $9869 ± 1,549 (16%) for THA. Total hospital cost was $17,894 ± 4,270 (24%) for TKA and $20,281 ± 2,057 (10%) for THA. In-room to incision time cost was $1,263 ± 100 (8%) for TKA and $1,341 ± 145 (11%) for THA. Surgery time cost was $1,558 ± 290 (19%) for TKA and $1,930 ± 374 (19%) for THA. Post-anesthesia care unit time cost was $507 ± 187 (36%) for TKA and $557 ± 302 (54%) for THA.ConclusionsDirect hospital costs were driven substantially below USA benchmark levels using the Total Joint-PSH pathway. The incremental benefit of each step in the coordinated care pathway is manifested as a lower average length of stay. We identified excessive variation in the cost of implants and post-anesthesia care.
Highlights
The numbers of people requiring total arthroplasty is expected to increase substantially over the two decades
It is well established that costs for total arthroplasty (TA) during the initial hospital stay are mostly driven by three major factors: implant cost, hospital length of stay (LOS), and operating room (OR) cost [4,7,8,9]
In total, 206 (n = 129 for total knee arthroplasty (TKA) and n = 77 for total hip arthroplasty (THA)) sequential patients undergoing unilateral primary TA were enrolled in the Total Joint-Perioperative Surgical Home (PSH) protocol
Summary
The numbers of people requiring total arthroplasty is expected to increase substantially over the two decades. The Perioperative Surgical Home (PSH) model, a patient-centered and physician-led multidisciplinary system of coordinated care, was implemented at UC Irvine Health in 2012 for patients undergoing primary elective total knee arthroplasty (TKA) or total hip arthroplasty (THA). This observational study examines the costs associated with this initiative. OR cost reduction has focused mainly on surgical techniques and operational efficiency These ad hoc interventions have been shown to reduce costs marginally in USA hospitals, but none has addressed the broader issue of a fragmented and inefficient perioperative system. The transition to performance-based bundled payments in the USA has illustrated the need for the adoption of perioperative practice models similar to those that have been in place in Europe for over a decade with proven financial benefits
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