Reaching the medicare allowable threshold in adult spinal deformity surgery: multicenter cost analysis comparing actual direct hospital costs versus what the government will pay.

dc.contributor.author

Gum, Jeffrey L

dc.contributor.author

Line, Breton

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Carreon, Leah Y

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Hostin, Richard A

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Yeramaneni, Samrat

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Glassman, Steven D

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Burton, Douglas L

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Smith, Justin S

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Shaffrey, Christopher I

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Passias, Peter G

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Lafage, Virginie

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Ames, Christopher P

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Shay Bess, R

dc.contributor.author

International Spine Study Group

dc.date.accessioned

2023-06-15T18:41:02Z

dc.date.available

2023-06-15T18:41:02Z

dc.date.issued

2022-03

dc.date.updated

2023-06-15T18:41:01Z

dc.description.abstract

Study design

Retrospective multicenter cost analysis.

Objective

To (1) determine if index episode of care (iEOC) costs of Adult Spinal Deformity (ASD) surgeries are below the Medicare Allowable (MA) threshold, and (2) identify variables that can predict iEOC cases that are below MA. Previous studies have suggested that actual direct hospital cost of Adult Spinal Deformity (ASD) surgery is higher than Medicare Allowable (MA) rates, which has become the benchmark reimbursement target for hospital accounting systems.

Methods

From a prospective, multicenter ASD surgical database, patients undergoing long instrumented fusions (> 5 level) with cost data were identified. iEOC cost was calculated utilizing actual direct hospital cost. MA rates were calculated using hospital specific, year-appropriate CMS Inpatient Pricer Payment System. Recursive partitioning identified potentially modifiable variables that can predict iEOC cost < MA.

Results

Administrative direct cost data from 210 patients were obtained from 4 of 11 centers. Ninety-five (45%) patients had iEOC cost < MA. There was significant variation across the four centers in both iEOC cost ($56,788-$78,878, p < 0.0001) and reimbursement ($40,623-$91,351, p < 0.0001) across deformity-specific DRGs (453,454,456,457). Academic centers were more likely to have iEOC costs < MA (67.2% vs 8.9%, p < 0.0001). Recursive partitioning (r2 = 0.309) identified rhBMP-2 use of < 24 mg, sagittal plane deformity, a combined anterior/posterior approach, and an SF36-MCS < 39 as predictive for iEOC cost < MA. Performing an anterior/posterior approach reimburses between 14.7% and 121.1% more (2.2-fold) than posterior-only approach. This change in DRG allows iEOC cost to be more likely below the MA threshold.

Conclusion

There is significant institutional (private vs academic) variation in ASD reimbursement. BMP use, deformity type, approach, and baseline mental health impact ASD surgery cost being below Medicare reimbursement. ASD surgeries with anterior/posterior approaches are in DRGs that can potentially reimburse 2.2-fold the posterior-only surgery, making it more likely to fall below the MA threshold.

Level of evidence

III.
dc.identifier

10.1007/s43390-021-00405-4

dc.identifier.issn

2212-134X

dc.identifier.issn

2212-1358

dc.identifier.uri

https://hdl.handle.net/10161/28035

dc.language

eng

dc.publisher

Springer Science and Business Media LLC

dc.relation.ispartof

Spine deformity

dc.relation.isversionof

10.1007/s43390-021-00405-4

dc.subject

International Spine Study Group

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Humans

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Spinal Fusion

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Retrospective Studies

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Prospective Studies

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Government

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Adult

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Aged

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Hospitals

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Hospital Costs

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Medicare

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United States

dc.title

Reaching the medicare allowable threshold in adult spinal deformity surgery: multicenter cost analysis comparing actual direct hospital costs versus what the government will pay.

dc.type

Journal article

duke.contributor.orcid

Shaffrey, Christopher I|0000-0001-9760-8386

duke.contributor.orcid

Passias, Peter G|0000-0002-1479-4070|0000-0002-9019-3285|0000-0003-2635-2226

pubs.begin-page

425

pubs.end-page

431

pubs.issue

2

pubs.organisational-group

Duke

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School of Medicine

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Clinical Science Departments

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Orthopaedic Surgery

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Neurosurgery

pubs.publication-status

Published

pubs.volume

10

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