Preoperative Patient Profile in Total Hip and Knee Arthroplasty: Predictive of Increased Medicare Payments in a Bundled Payment Model

J Arthroplasty. 2018 Sep;33(9):2728-2733.e3. doi: 10.1016/j.arth.2018.04.001. Epub 2018 Apr 9.

Abstract

Background: The shift toward value-based bundled payment models in total joint arthroplasty highlights the need for identification of modifiable risk factors for increased spending as well as opportunities to mitigate perioperative treatment of chronic disease. The purpose of this study was to identify preoperative comorbidities that result in an increased financial burden using institutional data at a single institution.

Methods: We conducted a retrospective review of total joint arthroplasty patients and collected payment data from the Center for Medicare and Medicaid Services for each patient up to 90 days after surgery in accordance with the regulations of the Comprehensive Care for Joint Replacement initiative. Statistical analysis and comparison of preoperative profile and Medicare payments as a surrogate for cost were completed.

Results: Six hundred ninety-four patients were identified over a 4-year time period who underwent surgery before adoption of the Comprehensive Care for Joint Replacement but that met criteria for inclusion. The median total payment per patient episode of care was $20,048. Preoperative diagnosis of alcoholism, anemia, diabetes, and obesity was found to have a statistically significant effect on total payments. The model predicted a geometric mean increase from $1425 to $9308 for patients bearing these comorbidities.

Conclusion: With Medicare payments as a surrogate for cost, we demonstrate that specific patient comorbidities and a cumulative increase in comorbidities predict increased costs. This study was based on institutional data rather than administrative data to gain actionable information on an institutional level and highlight potential flaws in research based on administrative data.

Keywords: Medicaid; Medicare; bundle; primary total hip arthroplasty; primary total knee arthroplasty.

MeSH terms

  • Aged
  • Arthroplasty, Replacement, Hip / economics*
  • Arthroplasty, Replacement, Knee / economics*
  • Centers for Medicare and Medicaid Services, U.S.
  • Comorbidity
  • Female
  • Health Care Costs
  • Health Expenditures*
  • Humans
  • Male
  • Medicare / economics*
  • Middle Aged
  • Patient Care Bundles / economics*
  • Preoperative Period
  • Retrospective Studies
  • United States