Citing wide variation in Medicare payments for common inpatient surgeries, researchers suggest that Medicare and other payors could find savings by combining reimbursements into bundled payments, according to a news release from Health Affairs.
The study, led by a researcher at the University of Michigan Medical School, relied on Medicare claims data from 2005-2007 for four common inpatient surgical procedures: hip replacement, coronary artery bypass grafting, back surgery and colon removal. Results of the analysis showed Medicare payments can vary among hospitals by 49-130 percent.
In fact, payments to the highest-cost hospitals exceed those to the lowest-cost facilities by up to $2,549 for colon removal surgery and $7,759 for back surgery. The study concluded that nearly 30 percent of hospitals are receiving payments above the national norm for multiple common procedures.
After adjusting the data for all predictable factors, researchers found the variation in payment levels was driven by several factors, including differences in surgeons' practice styles and the amount or cost of care that surgical patients received post-discharge, such as care provided by rehabilitation hospitals and nursing homes.
Although authors of the study noted the study does not prove bundled payments will work, the results demonstrate an opportunity for potential cost savings under that model.
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The study, led by a researcher at the University of Michigan Medical School, relied on Medicare claims data from 2005-2007 for four common inpatient surgical procedures: hip replacement, coronary artery bypass grafting, back surgery and colon removal. Results of the analysis showed Medicare payments can vary among hospitals by 49-130 percent.
In fact, payments to the highest-cost hospitals exceed those to the lowest-cost facilities by up to $2,549 for colon removal surgery and $7,759 for back surgery. The study concluded that nearly 30 percent of hospitals are receiving payments above the national norm for multiple common procedures.
After adjusting the data for all predictable factors, researchers found the variation in payment levels was driven by several factors, including differences in surgeons' practice styles and the amount or cost of care that surgical patients received post-discharge, such as care provided by rehabilitation hospitals and nursing homes.
Although authors of the study noted the study does not prove bundled payments will work, the results demonstrate an opportunity for potential cost savings under that model.
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