Payments for outpatient joint replacement surgery: A comparison of hospital outpatient departments and ambulatory surgery centers.

OBJECTIVE: To compare commercial insurance payments for outpatient total knee and hip replacement surgeries performed in hospital outpatient departments (HOPDs) and in ambulatory surgery centers (ASCs). DATA SOURCES: A large national claims database that contains information on actual prices paid to providers over the period 2014-2017. DATA COLLECTION: We identified all patients receiving total knee replacement surgery and total hip replacement surgery in HOPDs and in ASCs for each of the 4 years. STUDY
DESIGN: For each year, we conducted descriptive and statistical patient-level analyses of the facility component of payments to HOPDs and to ASCs. PRINCIPAL
FINDINGS: For each procedure and for each year, ASC payments exceeded HOPD payments by a wide margin; however, the gap across settings declined over time. In 2014, knee replacement payments to HOPDs (n = 67) were $6016 compared to $23 244 in ASCs (n = 68). By 2017, payments to HOPDs (n = 223) had grown to $10 060 compared to $18 234 in ASCs (n = 602). Similarly, for hip replacements, HOPD payments (n = 43) rose from $6980 in 2014 to $11 139 in 2017 (n = 206) and in ASCs fell from $28 485 in 2014 (n = 82) to $18 595 in 2017 (n = 465).
CONCLUSIONS: Results suggest that for total joint replacement, common perceptions of cost savings from transition of services from hospitals to ASCs may be misguided. © Health Research and Educational Trust.