Risk Versus Reward - Hospitals Incentivized More than Surgeons to Care for Riskier Arthroplasty Patients

Abstract

Purpose: The purpose of this study was to assess the relationship between risk and reimbursement for both surgeons and hospitals among Medicare patients undergoing primary total joint arthroplasty (TJA).

Methods: The "2021-Medicare-Physician-and-Other-Provider" and "2021-Medicare-Inpatient-Hospitals" files were utilized. Patient comorbidity profiles were collected, including the mean patient-hierarchal-condition-category (HCC) risk score, which is a standardized metric accounting for comorbidities. Surgeon data included all primary TJA procedures (inpatient and outpatient) billed to Medicare in 2021, while hospital data included all inpatient episodes of primary TJA billed to Medicare in 2021. Surgeon and hospital reimbursements were collected. All episodes were split into a "sicker-cohort" with an HCC risk score of 1.5 or greater and a "healthier-cohort" with HCC risk scores less than 1.5. Variables were compared across cohorts.

Results: In 2021, 386,355 primary total hip and knee arthroplasty procedures were billed to Medicare and were included. The mean surgeon reimbursement among the sicker cohort was $1,021.91, which was less than for the healthier cohort of $1,060.13 (P < 0.001). Meanwhile, for the hospital analysis, 112,012 Medicare patients were admitted as inpatients for primary TJA in 2021 and included. The mean reimbursement to hospitals was significantly greater for the sicker cohort at $13,950.66, compared to the healthier cohort of $8,430.46. For both the surgeon and hospital analyses, the sicker patient cohorts had a significantly higher rate of all comorbidities assessed (P < 0.001).

Conclusion: This study demonstrates that mean surgeon reimbursement was lower for primary TJA among sicker patients in comparison to their healthier counterparts, while hospital reimbursement was higher for sicker patients. This represents a discrepancy in the incentivization of care for complex patients, as hospitals receive increased remuneration for taking on extra risk, while surgeons get paid less on average for performing TJA on sicker patients. Such data should inform future policy to assure continued access to arthroplasty care among complex patients.

Keywords: Arthroplasty; Medicare; Reimbursement; Risk-adjustment.