As total knee arthroplasty incidence in the United States continues to increase, health care entities are looking to reform policy to decrease costs while improving efficiency and quality of care. The allocation of hospital and surgeon charges and payments is an important aspect of health care economics, but the trends and relationship between surgeon and hospital charges and payments for knee arthroplasty have not been well examined. The goal of this study is to report trends and variation in hospital charges and payments compared to surgeon charges and payments for total knee arthroplasty in a Medicare population. The 5% Medicare sample was used to capture hospital and surgeon charges and payments for total knee arthroplasty from 2005–2014. Two important values were calculated: (1) the charge multiplier (CM) which is the ratio of hospital to surgeon charges, and (2) the payment multiplier (PM), which is the ratio of hospital to surgeon payments. The year to year variation and regional trends in patient demographics, Charlson Comorbidity Index (CCI), length of stay (LOS), CM and PM were evaluated for all patients. Statistical significance of trends was evaluated using student's t-tests. Correlations between the financial multipliers and LOS were evaluated using a Pearson correlation coefficient (r).Introduction
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