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Financial Impact of Postoperative Complication Following Hepato-Pancreatico-Biliary Surgery for Cancer

  • Healthcare Policy and Outcomes
  • Published:
Annals of Surgical Oncology Aims and scope Submit manuscript

Abstract

Background

Despite increasing efforts for cost containment, little is known regarding the financial implications of postoperative complication under current volume-driven payment paradigms. This study sought the test the associations between hospital finances and postoperative complications among hepato-pancreatico-bilary cancer patients.

Methods

Patients undergoing surgery for the management of a hepatobiliary or pancreatic cancer between January 1, 2009 and December 31, 2013 were identified using institutional claims and cost-accounting data. Multivariable linear regression analyses were used to calculate risk-adjusted fixed and variable costs, payments, and net margins.

Results

A total of 1483 met inclusion criteria. Fixed ($9290 [interquartile range (IQR) $7129–$11,598] vs. $14,784 [IQR $10,523–$22,799], p < 0.001) and variable costs ($12,342 [IQR $9886–$14,762] vs. $19,330 [IQR $13,967–$29,435], p < 0.001) were higher among patients who developed a postoperative complication following a hepatectomy. A higher contribution margin ($12,421 [IQR $8440–$16,445] vs. $20,016 [IQR $14,212–$39,179], p < 0.001), as well as a twofold higher net profit was noted among patients who developed postoperative complication ($2788 [IQR $660–$5815] vs. $5515 [IQR $1068–$10,315], p < 0.001). Total hospital costs ($26,840 [IQR $21,318–$35,358] vs. $46,628 [IQR $31,974–$69,326], p < 0.001) as well as payments ($32,761 [IQR $26,394–$41,883] vs. $53,612 [IQR $38,548–$78,116], p < 0.001) were more than 1.5 times higher among patients who developed a postoperative complication following pancreatic resection. Contribution margins ($18,356 [IQR $14,024–$24,390] vs. $29,153 [IQR $20,256–$41,785], p < 0.001), as well as net profits ($5907 [IQR $2179–$9412] vs. $8114 [IQR $2518–$14,249], p < 0.001) were higher among patients who developed postoperative complication following pancreatic surgery.

Conclusions

A positive association was observed between net profits and postoperative complications. Future policies should target complications as a means to achieving a higher value for care.

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Author Contributions

Gani, Pawlik: Study Concept and Design, Gani, Hundt, Pawlik: Acquisition of Data, Gani, Hundt, Makary, Pawlik: Analysis and Interpretation, All authors: Drafting of Manuscript and Critical Revision.

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Authors and Affiliations

  1. Department of Surgery, Johns Hopkins University School of Medicine, Baltimore, MD, USA

    Faiz Gani MBBS, John Hundt MBA, Martin A. Makary MD, MPH & Timothy M. Pawlik MD, MPH, PhD, FACS, FRACS (Hon.)

  2. Department of Surgery, Brigham and Women’s Hospital, Boston, MA, USA

    Adil H. Haider MD, MPH & Cheryl K. Zogg MSPH, MHS

Authors
  1. Faiz Gani MBBS
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  2. John Hundt MBA
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  3. Martin A. Makary MD, MPH
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  4. Adil H. Haider MD, MPH
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  5. Cheryl K. Zogg MSPH, MHS
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  6. Timothy M. Pawlik MD, MPH, PhD, FACS, FRACS (Hon.)
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Corresponding author

Correspondence to Timothy M. Pawlik MD, MPH, PhD, FACS, FRACS (Hon.).

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Gani, F., Hundt, J., Makary, M.A. et al. Financial Impact of Postoperative Complication Following Hepato-Pancreatico-Biliary Surgery for Cancer. Ann Surg Oncol 23, 1064–1070 (2016). https://doi.org/10.1245/s10434-015-5042-x

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  • DOI: https://doi.org/10.1245/s10434-015-5042-x

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