BackgroundTreatment of large segmental defects in skeletal long bones is challenging. Heterogeneity in patient presentation further increase the difficulty in designing and running randomized trials, hence the paucity of published data with large patient numbers. This study was designed to help understand patient presentation, costs and outcomes, using real world data sources. MethodsTwo data sources (Premier healthcare database (PHD) and IBM® MarketScan® Commercial Claims and Medicaid databases) were utilized, PHD for intraoperative and cost analyses, MarketScan for payer costs and longitudinal (2-year) outcomes. Patients were included in the analysis if they had diagnoses of osteomyelitis, non-union or open (acute) fractures, treated with bone graft and/or spacers, using either the Masquelet or external frames. Patient cohorts were defined by diagnosis at index (acute fracture, osteomyelitis, non-union) and descriptive statistics were conducted for patient variables (demographic, comorbidities) and outcomes. Risk of complications were estimated using logistic regression models. Hospital and payer costs for index and follow-up periods, were estimated using least means square estimators from generalized linear model outputs. All costs and payments were adjusted for inflation to 2019 consumer price-index. Results904 patients were identified in PHD (414 fractures, 388 osteomyelitis and 102 nonunion patients). Main comorbidities at time of initial surgery were hypertension (32.7%) followed by obesity (22.1%), diabetes with complications (20.9%) and chronic pulmonary disease (20.6%). Significant variability in surgical operating room time and length of stay were observed, with averages of 484.7 minutes and 11.7 days, respectively. Two-year postoperative infection rates ranged from 33.1% - 58.5%, the highest infection rates being reflective of ongoing infections in patients initially treated for osteomyelitis. Amputation rates ranged from 10.0% in patients with bone loss due to acute factures to 14.5% in patients with osteomyelitis. Osteomyelitis patients were also the costliest, with 12-months hospital costs averaging US$ 156.818 (95%CI: 112,970-217,685). ConclusionThis study identified high complication rates and costs of segmental bone repair surgery. All patients with segmental bone defects had high costs and risks but patients with osteomyelitis were at significant risk for increased cost and complications, including amputation. Medical innovation is particularly important for this high-risk patient group.