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General Orthopaedics

IS REVISION HIP AND KNEE SURGERY FINANCIALLY VIABLE IN A DISTRICT GENERAL HOSPITAL? THE IMPORTANCE OF ACCURATE CODING

British Orthopaedic Association (BOA) 2007



Abstract

Aim

To evaluate the costs of performing revision hip and knee surgery at a District General Hospital.

Methods

A retrospective review of all revision hip and knee surgery between October 2004 and October 2006 was performed. Information was obtained from the notes and theatre log books. Each case was fully costed. The breakdown costs included implant choice, theatre time, length of stay, allograft, blood products and post-operative physiotherapy/OT. The costs were obtained from the hospital financial department and theatre invoices. Payment to the hospital is based on a specific tariff which in turn is determined by coding each patient episode. We individually coded every case, using the OPCS 4.3 coding system, and applied the appropriate tariff. The tariffs that the financial department had applied to each case were also available. A comparison was made between actual costs incurred, the expected reimbursement (from our study coding) and the actual reimbursement received (from finance department).

Results

167 revision procedures were performed (108 hips and 59 knees). The total incurred cost of revision hip surgery was £930,156 (mean £8,613 per case). The expected total reimbursement according to our coding was £938,325 (mean £8,688). The total reimbursement actually received was £806,836 (mean £7,471). The total incurred cost of revision knee surgery was £493,357 (mean £8,362). The expected total reimbursement according to our coding was £499,042 (mean £8,458). The total reimbursement was £419,157 (mean £7,104).

Conclusions

Inadequate coding results in reduced income. If strict coding practices are adhered to then performing revision hip and knee surgery should be financially viable at a district general hospital.