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General Orthopaedics

GAIN SHARING IN BUNDLED PAYMENT TJA: THE REQUISITE OF SURGEON LEADERSHIP

The Current Concepts in Joint Replacement (CCJR) Winter Meeting, 14 – 17 December 2016.



Abstract

The high and ever increasing cost of medical care worldwide has driven a trend toward new payment models. Event based models (such as bundled payment for surgical events) have shown a greater potential for care and cost improvement than population-based models (such as accountable care organizations). Since joint replacement is among the most frequent and costly surgical events in medicine, bundled payments for joint replacement episodes have been at the forefront of evolution from fee-for-service to value-based care models and episode-based healthcare reform in general.

Our education as surgeons in medical school, residency, fellowship, and in continuing education has been almost entirely non-economic in focus. Yet, we surgeons are now evolving from being primarily responsive for our patients' medical care to being also responsible for all expenditures associated with our patients' care. Similarly, while the cost of our patients' care was not even available to us, every dollar of expenditure for a patient's episode of care is now available to us in some circumstances. For example, a typical primary joint replacement episode may cost $30,000 for a patient insured by Medicare in the US. A surgeon performing 400 joint replacements per year is therefore authorizing upwards of $12M a year in health care spending by making the decisions to perform reconstructive procedures on those patients.

The risk for value-based surgical episodes of care can be born by various entities including hospital systems or the surgeons themselves. Recent evidence demonstrates that quality improves and cost decreases more rapidly when surgeons take primary responsibility and risk for episodes of care as compared to when a hospital system or third party takes primary responsibility and risk. Yet, as surgeons, our education in the field of medical economics, value-based episodes of care, and payment reform is only just beginning. The more we understand about the cost and value of the services that we order for our patients, the more leadership can provide as healthcare evolves. The current presentation will describe the specific cost of care for the primary joint replacement patient preliminary experience with accepting risk and responsibility for these patients. It is likely that our patients will be best served if we surgeons provide as much leadership as possible in their care, both medically and economically.