Bundled Payments for Elective Primary Total Knee Arthroplasty

Bundled payments have been proposed as a mechanism for restraining health care spending for total knee arthroplasty (TKA), but empirical data are limited. We used Medicare data to examine variation in payments for TKA during a window extending 30 days before to 90 days after TKA for 167 186 patients...

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Main Authors: Peter Cram MD, MBA, Xin Lu MS, Yue Li PhD
Format: Article
Language:English
Published: SAGE Publishing 2015-03-01
Series:Geriatric Orthopaedic Surgery & Rehabilitation
Online Access:https://doi.org/10.1177/2151458514559832
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author Peter Cram MD, MBA
Xin Lu MS
Yue Li PhD
author_facet Peter Cram MD, MBA
Xin Lu MS
Yue Li PhD
author_sort Peter Cram MD, MBA
collection DOAJ
description Bundled payments have been proposed as a mechanism for restraining health care spending for total knee arthroplasty (TKA), but empirical data are limited. We used Medicare data to examine variation in payments for TKA during a window extending 30 days before to 90 days after TKA for 167 186 patients who underwent elective primary TKA in 2009. Mean Medicare payment was US$23 656. We found that 2.5% of patients incurred payments of >US$50 000 (0.2% >US$100 000). Payments were lower for men and for non-Hispanic whites but higher for patients with greater comorbidity. Episode-of-care payment for primary TKA varies substantially depending upon patient demographics and comorbidity. To the extent that similar patients tend to be clustered within hospitals, bundled payments could inadvertently cause financial harm to certain health systems while rewarding others.
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spelling doaj.art-cac731378b704c92bdf5c216c56facda2022-12-22T02:23:23ZengSAGE PublishingGeriatric Orthopaedic Surgery & Rehabilitation2151-45852151-45932015-03-01610.1177/2151458514559832Bundled Payments for Elective Primary Total Knee ArthroplastyPeter Cram MD, MBA0Xin Lu MS1Yue Li PhD2 Division of General Internal Medicine, Department of Internal Medicine, University of Iowa Carver College of Medicine, Iowa City, IA, USA Division of General Internal Medicine, Department of Internal Medicine, University of Iowa Carver College of Medicine, Iowa City, IA, USA Department of Public Health Sciences, University of Rochester School of Medicine, Rochester, NY, USABundled payments have been proposed as a mechanism for restraining health care spending for total knee arthroplasty (TKA), but empirical data are limited. We used Medicare data to examine variation in payments for TKA during a window extending 30 days before to 90 days after TKA for 167 186 patients who underwent elective primary TKA in 2009. Mean Medicare payment was US$23 656. We found that 2.5% of patients incurred payments of >US$50 000 (0.2% >US$100 000). Payments were lower for men and for non-Hispanic whites but higher for patients with greater comorbidity. Episode-of-care payment for primary TKA varies substantially depending upon patient demographics and comorbidity. To the extent that similar patients tend to be clustered within hospitals, bundled payments could inadvertently cause financial harm to certain health systems while rewarding others.https://doi.org/10.1177/2151458514559832
spellingShingle Peter Cram MD, MBA
Xin Lu MS
Yue Li PhD
Bundled Payments for Elective Primary Total Knee Arthroplasty
Geriatric Orthopaedic Surgery & Rehabilitation
title Bundled Payments for Elective Primary Total Knee Arthroplasty
title_full Bundled Payments for Elective Primary Total Knee Arthroplasty
title_fullStr Bundled Payments for Elective Primary Total Knee Arthroplasty
title_full_unstemmed Bundled Payments for Elective Primary Total Knee Arthroplasty
title_short Bundled Payments for Elective Primary Total Knee Arthroplasty
title_sort bundled payments for elective primary total knee arthroplasty
url https://doi.org/10.1177/2151458514559832
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