| Literature DB >> 31304304 |
Sean D Delshad1,2, Christopher V Almario1,3,4, Garth Fuller1, Duong Luong5, Brennan M R Spiegel1,3,4,6.
Abstract
Virtual reality (VR) has emerged as a novel and effective non-pharmacologic therapy for pain, and there is growing interest to use VR in the acute hospital setting. We sought to explore the cost and effectiveness thresholds VR therapy must meet to be cost-saving as an inpatient pain management program. The result is a framework for hospital administrators to evaluate the return on investment of implementing inpatient VR programs of varying effectiveness and cost. Utilizing decision analysis software, we compared adjuvant VR therapy for pain management vs. usual care among hospitalized patients. In the VR strategy, we analyzed potential cost-savings from reductions in opioid utilization and hospital length of stay (LOS), as well as increased reimbursements from higher patient satisfaction as measured by the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) survey. The average overall hospitalization cost-savings per patient for the VR program vs. usual care was $5.39 (95% confidence interval -$11.00 to $156.17). In a probabilistic sensitivity analysis across 1000 hypothetical hospitals of varying size and staffing, VR remained cost-saving in 89.2% of trials. The VR program was cost-saving so long as it reduced LOS by ≥14.6%; the model was not sensitive to differences in opioid use or HCAHPS. We conclude that inpatient VR therapy may be cost-saving for a hospital system primarily if it reduces LOS. In isolation, cost-savings from reductions in opioid utilization and increased HCAHPS-related reimbursements are not sufficient to overcome the costs of VR.Entities:
Keywords: Health care economics; Pain
Year: 2018 PMID: 31304304 PMCID: PMC6550142 DOI: 10.1038/s41746-018-0026-4
Source DB: PubMed Journal: NPJ Digit Med ISSN: 2398-6352
Fig. 1Tornado Analysis. Results of the multiple univariate sensitivity analysis testing the influence of variables on the model. Each bar demonstrates the range of cost-savings potential associated with the range (described in parentheses) tested for various variables (described in text next to each bar). A black indentation on the left-side of a bar indicates that the lowest value of cost-savings associated with the variable over the range tested is zero. The cost savings potential of the VR therapy program was most dependent on patient acceptance and eligibility and percent reduction in patient length of stay. Other significant factors include ORADE rate, costs of VR, number of admissions per year, and the degree to which VR therapy decreases opioid utilization. The probability of patients selecting the best possible answers on the HCAHPS survey had the least impact on the outcome of the model, and was not included in this figure. VR, virtual reality; ORADE, opioid-related adverse drug event; HCAHPS, Hospital Consumer Assessment of Healthcare Providers and Systems
Results of one-way sensitivity analyses
| Variable | Base-case estimate | Threshold | Comment |
|---|---|---|---|
| VR-Related | |||
| Probability of patient eligibility and acceptance of VR therapy | 19.3% | 14.6% | If percentage exceeds this threshold, VR therapy is cost-saving |
| Total yearly fixed costs of VR program | $246,090 | $326,872 | If cost remains below this threshold, VR therapy is cost-saving |
| VR variable cost | $3 | $31 | If cost remains below this threshold, VR therapy is cost-saving |
| Probability of minor VR adverse effects | 2.5% | 21.8% | If probability remains below this threshold, VR therapy is cost-saving |
| Probability of a major VR adverse effects | 0.025% | 0.06% | If probability remains below this threshold, VR therapy is cost-saving |
| Probability of finishing VR therapy given no adverse effects | 90.0% | 68.7% | If probability exceeds this threshold, VR therapy is cost-saving |
| Opioid-Related | |||
| Percentage decrease in inpatient opioid utilization secondary to VR therapy | 24.0% | NA | VR therapy is cost-saving even if it does not affect opioid utilization rate |
| Probability of an ORADE | 2.4% | NA | VR therapy is cost-saving even if the ORADE rate is 0 |
| Cost of an ORADE | $3,457 | NA | VR therapy is cost-saving regardless of the cost of an ORADE |
| Hospital-related | |||
| Hospital admissions per year | 15,000 | 11,485 | If number exceeds this threshold, VR therapy is cost-saving |
| Marginal cost associated with final day of hospitalization | $584 | $425 | If cost exceeds this threshold, VR therapy is cost-saving |
| Percentage of marginal cost savings of final day of hospitalization for patients receiving VR therapy without adverse effects | 20% | 14.6% | If percentage exceeds this threshold, VR therapy is cost-saving |
VR virtual reality, ORADE opioid-related adverse drug event, NA not applicable
Return on investment lookup table
| Total fixed costs of VR Program per year | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| $100,000 | $200,000 | $300,000 | $400,000 | $500,000 | $600,000 | $700,000 | $800,000 | $900,000 | $1,000,000 | ||
| Admissions per Year |
| 1.79 | (18.21) | (38.21) | (58.21) | (78.21) | (98.21) | (118.21) | (138.21) | (158.21) | (178.21) |
|
| 11.79 | 1.79 | (8.21) | (18.21) | (28.21) | (38.21) | (48.21) | (58.21) | (68.21) | (78.21) | |
|
| 15.13 | 8.46 | 1.79 | (4.88) | (11.54) | (18.21) | (24.88) | (31.54) | (38.21) | (44.88) | |
|
| 16.79 | 11.79 | 6.79 | 1.79 | (3.21) | (8.21) | (13.21) | (18.21) | (23.21) | (28.21) | |
|
| 17.79 | 13.79 | 9.79 | 5.79 | 1.79 | (2.21) | (6.21) | (10.21) | (14.21) | (18.21) | |
|
| 18.46 | 15.13 | 11.79 | 8.46 | 5.13 | 1.79 | (1.54) | (4.88) | (8.21) | (11.54) | |
|
| 18.93 | 16.08 | 13.22 | 10.36 | 7.51 | 4.65 | 1.79 | (1.07) | (3.92) | (6.78) | |
|
| 19.29 | 16.79 | 14.29 | 11.79 | 9.29 | 6.79 | 4.29 | 1.79 | (0.71) | (3.21) | |
|
| 19.57 | 17.35 | 15.13 | 12.90 | 10.68 | 8.46 | 6.24 | 4.01 | 1.79 | (0.43) | |
|
| 19.79 | 17.79 | 15.79 | 13.79 | 11.79 | 9.79 | 7.79 | 5.79 | 3.79 | 1.79 | |
Costs savings (or losses) per patient depending on the number of admissions per year and the total fixed costs per year for a virtual reality (VR) therapy program. The value in each cell is the projected cost savings per patient; the value in parentheses indicates a net loss per patient. As an example, for a hospital with 20,000 admissions per year, a VR program that has a total of $300,000 in fixed costs per year would be associated with $6.79 in cost-savings per patient. This table assumes the base-case variables, probabilities and costs described in Table 3. Contact the authors to obtain model results under alternative assumptions.
The bold values are the number of "admissions per year" to the hospital
Base-case probabilities, costs, and other variables and ranges tested
| Variable | Base-case probability (%) | Range tested (%) |
|---|---|---|
| VR patient eligibility and acceptancea,[ | 19.3 | 10–50 |
| VR minor adverse effect[ | 2.5 | 0–5 |
| VR major adverse effect[ | 0.025 | 0–0.5 |
| ORADE rate[ | 2.4 | 1.8–13.6 |
| Opioid utilization[ | 65 | 10–75 |
VR virtual reality, ORADE opioid-related adverse drug event, LOS length of stay
aAssumes patient acceptance rate of 50% and inclusion of patients on respiratory and contact isolation
bBased on pricing strategy of AppliedVR. See Table 4 for more detailed description of VR cost calculation
cNo data supporting base-case estimate. The estimate is an assumption. The base-case multiplier represents the marginal cost reduction of the final day of hospitalization associated with VR use
VR fixed and variable costs
| Cost ($) | |
|---|---|
| VR fixed costs | |
| VR annual licensea,b | 3500 per year |
| Virtualistc,[ | 47,030 per year |
| VR variable costs | |
| Disinfectant wipes[ | 0.16 |
| Bouffant hat[ | 0.23 |
| Foam liner and headphonesb | 3 |
VR virtual reality
aThirty licenses were hypothetically purchased for the base-case. Each license includes a VR headset, subscription to VR software (content), and unlimited training and technical support
bBased on pricing strategy of AppliedVR
cTwo virtualists were hypothetically hired for the base-case
Fig. 2Truncated Decision Model. In the base-case, a general hospital inpatient underwent 1 of 2 competing strategies: an inpatient stay with available VR therapy or an inpatient stay without available VR therapy (status quo). In the setting of available VR therapy, the patient would then have to be eligible for and accept VR therapy, and subsequently experience either no adverse effects, minor adverse effects, or a major adverse effect. The patient chooses whether to complete the full course of VR therapy with resultant changes in opioid utilization, satisfaction, and length of stay. “Top Box” refers to the patient selecting the best possible answers to the HCAHPS survey questions related to the Pain and/or Overall domains. VR, virtual reality; HCAHPS, Hospital Consumer Assessment of Healthcare Providers and Systems