Skip to main content
Log in

Determinants of Direct Medical Costs in Primary and Revision Total Knee Arthroplasty

  • Symposium: Papers Presented at the Annual Meetings of the Knee Society
  • Published:
Clinical Orthopaedics and Related Research®

Abstract

Background

TKA procedures are increasing rapidly, with substantial cost implications. Determining cost drivers in TKA is essential for care improvement and informing future payment models.

Questions/Purposes

We determined the components of hospitalization and 90-day costs in primary and revision TKA and the role of demographics, operative indications, comorbidities, and complications as potential determinants of costs.

Methods

We studied 6475 primary and 1654 revision TKA procedures performed between January 1, 2000, and September 31, 2008, at a single center. Direct medical costs were measured by using standardized, inflation-adjusted costs for services and procedures billed during the 90-day period. We used linear regression models to determine the cost impact associated with individual patient characteristics.

Results

The largest proportion of costs in both primary and revision TKA, respectively, were for room and board (28% and 23%), operating room (22% and 17%), and prostheses (13% and 24%). Prosthesis costs were almost threefold higher in revision TKA than in primary TKA. Revision TKA procedures for infections and bone and/or prosthesis fractures were approximately 25% more costly than revisions for instability and loosening. Several common comorbidities were associated with higher costs. Patients with vascular and infectious complications had longer hospital stays and at least 80% higher 90-day costs as compared to patients without complications.

Conclusions

High prosthesis costs in revision TKA represent a factor potentially amenable to cost containment efforts. Increased costs associated with demographic factors and comorbidities may put providers at financial risk and may jeopardize healthcare access for those patients in greatest need.

Level of Evidence

Level IV, economic and decision analyses. See Instructions for Authors for a complete description of levels of evidence

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2A–E

Similar content being viewed by others

References

  1. Agency for Healthcare Research and Quality. Procedures with the Most Rapidly Increasing Hospital Costs, 2004–2007. HCUP Statistical Brief #82. Rockville, MD: Agency for Healthcare Research and Quality; 2009.

  2. American Academy of Orthopaedic Surgeons. United States Bone and Joint Decade: The Burden of Musculoskeletal Diseases in the United States: Prevalence, Societal and Economic Cost. Rosemont, IL: American Academy of Orthopaedic Surgeons; 2008.

    Google Scholar 

  3. Centers for Medicare & Medicaid Services. Berenson-Eggers Type of Service (BETOS) codes. 2011. Available at: https://www.cms.gov/HCPCSReleaseCodeSets/20_BETOS.asp. Accessed December 5, 2011.

  4. Baser O, Supina D, Sengupta N, Wang L, Kwong L. Clinical and cost outcomes of venous thromboembolism in Medicare patients undergoing total hip replacement or total knee replacement surgery. Curr Med Res Opin. 2011;27:423429.

    Article  PubMed  Google Scholar 

  5. Berry DJ, Kessler M, Morrey BF. Maintaining a hip registry for 25 years: Mayo Clinic experience. Clin Orthop Relat Res. 1997;344:61–68.

    Article  PubMed  Google Scholar 

  6. Berry DJ, von Knoch M, Schleck CD, Harmsen WS. Effect of femoral head diameter and operative approach on risk of dislocation after primary total hip arthroplasty. J Bone Joint Surg Am. 2005;87:2456–2463.

    Article  PubMed  Google Scholar 

  7. Bozic KJ, Morshed S, Silverstein MD, Rubash HE, Kahn JG. Use of cost-effectiveness analysis to evaluate new technologies in orthopaedics: the case of alternative bearing surfaces in total hip arthroplasty. J Bone Joint Surg Am. 2006;88:706–714.

    Article  PubMed  Google Scholar 

  8. Bozic KJ, Ries MD. The impact of infection after total hip arthroplasty on hospital and surgeon resource utilization. J Bone Joint Surg Am. 2005;87:1746–1751.

    Article  PubMed  Google Scholar 

  9. Davenport DL, Henderson WG, Khuri SF, Mentzer RM Jr. Preoperative risk factors and surgical complexity are more predictive of costs than postoperative complications: a case study using the National Surgical Quality Improvement Program (NSQIP) database. Ann Surg. 2005;242:463–468; discussion 468–471.

    PubMed  Google Scholar 

  10. Dreghorn CR, Roughneen P, Graham J, Hamblen DL. The real cost of joint replacement. Br Med J (Clin Res Ed). 1986;292:1636–1637.

    Article  CAS  Google Scholar 

  11. Dummit LA. Medicare’s bundling pilot: including post-acute care services. Issue Brief Natl Health Policy Forum. 2011;841:1–23.

    PubMed  Google Scholar 

  12. Elixhauser A, Steiner C, Harris DR, Coffey RM. Comorbidity measures for use with administrative data. Med Care. 1998;36:8–27.

    Article  PubMed  CAS  Google Scholar 

  13. Finkler SA. The distinction between cost and charges. Ann Intern Med. 1982;96:102–109.

    PubMed  CAS  Google Scholar 

  14. Gioe TJ, Sharma A, Tatman P, Mehle S. Do “premium” joint implants add value? Analysis of high cost joint implants in a community registry. Clin Orthop Relat Res. 2011;469:48–54.

    Article  PubMed  Google Scholar 

  15. Hawker GA, Badley EM, Croxford R, Coyte PC, Glazier RH, Guan J, Harvey BJ, Williams JI, Wright JG. A population-based nested case-control study of the costs of hip and knee replacement surgery. Med Care. 2009;47:732–741.

    Article  PubMed  Google Scholar 

  16. Healy WL, Finn D. The hospital cost and the cost of the implant for total knee arthroplasty: a comparison between 1983 and 1991 for one hospital. J Bone Joint Surg Am. 1994;76:801–806.

    PubMed  CAS  Google Scholar 

  17. Hebert CK, Williams RE, Levy RS, Barrack RL. Cost of treating an infected total knee replacement. Clin Orthop Relat Res. 1996;331:140–145.

    Article  PubMed  Google Scholar 

  18. Hellmann M, Mehta SD, Bishai DM, Mears SC, Zenilman JM. The estimated magnitude and direct hospital costs of prosthetic joint infections in the United States, 1997 to 2004. J Arthroplasty. 2010;25:766–771.e1.

    PubMed  Google Scholar 

  19. Huddleston JM, Long KH, Naessens JM, Vanness D, Larson D, Trousdale R, Plevak M, Cabanela M, Ilstrup D, Wachter RM. Medical and surgical comanagement after elective hip and knee arthroplasty: a randomized, controlled trial. Ann Intern Med. 2004;141:28–38.

    PubMed  Google Scholar 

  20. Kelly MP, Bozic KJ. Cost drivers in total hip arthroplasty: effects of procedure volume and implant selling price. Am J Orthop. 2009;38:E1–E4.

    Article  PubMed  Google Scholar 

  21. Kim S. Changes in surgical loads and economic burden of hip and knee replacements in the US: 1997–2004. Arthritis Rheum. 2008;59:481–488.

    Article  PubMed  Google Scholar 

  22. Klouche S, Sariali E, Mamoudy P. Total hip arthroplasty revision due to infection: a cost analysis approach. Orthop Traumatol Surg Res. 2010;96:124–132.

    Article  PubMed  CAS  Google Scholar 

  23. Kurtz S, Ong K, Lau E, Mowat F, Halpern M. Projections of primary and revision hip and knee arthroplasty in the United States from 2005 to 2030. J Bone Joint Surg Am. 2007;89:780–785.

    Article  PubMed  Google Scholar 

  24. Kurtz SM, Lau E, Ong K, Zhao K, Kelly M, Bozic KJ. Future young patient demand for primary and revision joint replacement: national projections from 2010 to 2030. Clin Orthop Relat Res. 2009;467:2606–2612.

    Article  PubMed  Google Scholar 

  25. Lavernia C, Lee DJ, Hernandez VH. The increasing financial burden of knee revision surgery in the United States. Clin Orthop Relat Res. 2006;446:221–226.

    Article  PubMed  Google Scholar 

  26. Lavernia CJ, D’Apuzzo MR, Hernandez VH, Lee DJ, Rossi MD. Postdischarge costs in arthroplasty surgery. J Arthroplasty. 2006;21:144–150.

    Article  PubMed  Google Scholar 

  27. Leibson CL, Katusic SK, Barbaresi WJ, Ransom J, O’Brien PC. Use and costs of medical care for children and adolescents with and without attention-deficit/hyperactivity disorder. JAMA. 2001;285:60–66.

    Article  PubMed  CAS  Google Scholar 

  28. Losina E, Thornhill TS, Rome BN, Wright J, Katz JN. The dramatic increase in total knee replacement utilization rates in the United States cannot be fully explained by growth in population size and the obesity epidemic. J Bone Joint Surg Am. 2012;94:201–207.

    Article  PubMed  Google Scholar 

  29. Losina E, Walensky RP, Kessler CL, Emrani PS, Reichmann WM, Wright EA, Holt HL, Solomon DH, Yelin E, Paltiel AD, Katz JN. Cost-effectiveness of total knee arthroplasty in the United States: patient risk and hospital volume. Arch Intern Med. 2009;169:1113–1121; discussion 1121–1112.

    Article  PubMed  Google Scholar 

  30. March L, Cross M, Tribe K, Lapsley H, Courtenay B, Brooks P. Cost of joint replacement surgery for osteoarthritis: the patients’ perspective. J Rheumatol. 2002;29:1006–1014.

    PubMed  Google Scholar 

  31. Meyers SJ, Reuben JD, Cox DD, Watson M. Inpatient cost of primary total joint arthroplasty. J Arthroplasty. 1996;11:281–285.

    Article  PubMed  CAS  Google Scholar 

  32. Oduwole KO, Molony DC, Walls RJ, Bashir SP, Mulhall KJ. Increasing financial burden of revision total knee arthroplasty. Knee Surg Sports Traumatol Arthrosc. 2010;18:945–948.

    Article  PubMed  Google Scholar 

  33. Parvizi J, Pawasarat IM, Azzam KA, Joshi A, Hansen EN, Bozic KJ. Periprosthetic joint infection: the economic impact of methicillin-resistant infections. J Arthroplasty. 2010;25:103–107.

    Article  PubMed  Google Scholar 

  34. Reuben JD, Meyers SJ, Cox DD, Elliott M, Watson M, Shim SD. Cost comparison between bilateral simultaneous, staged, and unilateral total joint arthroplasty. J Arthroplasty. 1998;13:172–179.

    Article  PubMed  CAS  Google Scholar 

  35. Shwartz M, Iezzoni LI, Moskowitz MA, Ash AS, Sawitz E. The importance of comorbidities in explaining differences in patient costs. Med Care. 1996;34:767–782.

    Article  PubMed  CAS  Google Scholar 

  36. Slover J, Espehaug B, Havelin LI, Engesaeter LB, Furnes O, Tomek I, Tosteson A. Cost-effectiveness of unicompartmental and total knee arthroplasty in elderly low-demand patients: a Markov decision analysis. J Bone Joint Surg Am. 2006;88:2348–2355.

    Article  PubMed  Google Scholar 

  37. Sood N, Huckfeldt PJ, Escarce JJ, Grabowski DC, Newhouse JP. Medicare’s bundled payment pilot for acute and postacute care: analysis and recommendations on where to begin. Health Aff (Millwood). 2011;30:1708–1717.

    Article  Google Scholar 

  38. Stargardt T. Health service costs in Europe: cost and reimbursement of primary hip replacement in nine countries. Health Econ. 2008;17:S9–S20.

    Article  PubMed  Google Scholar 

  39. Vekeman F, LaMori JC, Laliberte F, Nutescu E, Duh MS, Bookhart BK, Schein J, Dea K, Olson WH, Lefebvre P. Risks and cost burden of venous thromboembolism and bleeding for patients undergoing total hip or knee replacement in a managed-care population. J Med Econ. 2011;14:324–334.

    Article  PubMed  Google Scholar 

  40. Wei MH, Lin YL, Shi HY, Chiu HC. Effects of provider patient volume and comorbidity on clinical and economic outcomes for total knee arthroplasty: a population-based study. J Arthroplasty. 2010;25:906–912.e1.

    PubMed  Google Scholar 

  41. Wilson NA, Schneller ES, Montgomery K, Bozic KJ. Hip and knee implants: current trends and policy considerations. Health Aff (Millwood). 2008;27:1587–1598.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Hilal Maradit Kremers MD, MSc.

Additional information

Each author certifies that he or she, or a member of his or her immediate family, has no commercial associations (eg, consultancies, stock ownership, equity interest, patent/licensing arrangements, etc) that might pose a conflict of interest in connection with the submitted article.

All ICMJE Conflict of Interest Forms for authors and Clinical Orthopaedics and Related Research editors and board members are on file with the publication and can be viewed on request.

Clinical Orthopaedics and Related Research neither advocates nor endorses the use of any treatment, drug, or device. Readers are encouraged to always seek additional information, including FDA approval status, of any drug or device before clinical use.

Each author certifies that his or her institution approved the human protocol for this investigation and that all investigations were conducted in conformity with ethical principles of research.

About this article

Cite this article

Maradit Kremers, H., Visscher, S.L., Moriarty, J.P. et al. Determinants of Direct Medical Costs in Primary and Revision Total Knee Arthroplasty. Clin Orthop Relat Res 471, 206–214 (2013). https://doi.org/10.1007/s11999-012-2508-z

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11999-012-2508-z

Keywords

Navigation