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Latest PO Joint Replacement Report Adds Outpatient Rehab Rates, Demographics, and More

Latest PO Joint Replacement Report Adds Outpatient Rehab Rates, Demographics, and More

MVC proudly partners with 40 physician organizations (PO) spanning the state of Michigan and continues to refine and add to the resources tailored to these members. As part of this work, MVC recently refreshed and shared PO joint replacement reports in December. These PO-level reports were first shared in October 2021 with a focus on the shift away from inpatient surgeries as well as post-acute care utilization for combined joint procedures.

The recently refreshed reports carried forward many of the joint episode metrics included previously, but with additional stratification and detail. For instance, whereas the 2021 version presented figures for all joint surgeries combined, many of the figures in the December 2022 version provided data stratified by hip procedure, knee procedure, and all joint procedures. Similarly, some figures are stratified by the location of the procedure (inpatient vs. outpatient). This new differentiation was intended to help POs more easily understand the underlying drivers of their metrics. For example, the blinded hospital below (Figure 1) could observe that its average 30-day price-standardized total episode payment is driven more by hip surgeries ($17,399) than knee surgeries ($16,643). This site could also observe that its overall total episode payment is below both the collaborative-wide PO average and the average in their region, and at the average for other POs of a similar size.

Figure 1.

Additional detail was also added to the patient attribution table, which now identifies the top 10 index facilities (rather than five) where a PO’s attributed patients underwent joint replacement surgery. This table now also includes each index facility’s percent of joint episodes performed in an outpatient setting as well as their average 30-day price-standardized total episode payment for attributed patients. This change was intended to inform quality improvement discussions between POs and partner hospitals or Ambulatory Surgical Centers (ASCs).

Also new to this report were 30-day outpatient rehabilitation rates and a patient population snapshot table to help POs better understand the demographics of patients included in the report. The table included mean age, top two patient Zip codes, the percent of patients living in an “at-risk” or “distressed” Zip code according to the Distressed Communities Index, the proportion of patients belonging to different racial categories, their average length of stay, and their 30-day post-surgery complication rate. Each of these categories was summarized separately by insurance plan.

This report utilized administrative claims from attributed members spanning 1/1/19 – 6/30/21 for Blue Cross Blue Shield of Michigan (BCBSM) PPO Commercial, BCBSM Medicare Advantage, and Medicare Fee-for-Service. Reports were prepared for all POs that participate in MVC and had at least 20 joint replacement episodes in 2019 and 2020, and at least 11 episodes in the first half of 2021.

In general, report findings indicated that utilization of outpatient surgery settings continued to increase in 2021 on average (Figure 2). However, there was still significant variation between MVC’s 40 PO members in their average rate of joint replacement surgeries taking place in outpatient settings (Figure 3). For joint episodes in 2019 through the first half of 2021, outpatient surgery rates ranged from just over 20% to nearly 80%.

Figure 2.

Figure 3.

On average across the collaborative, POs still had low rates of skilled nursing facility (SNF) utilization (6.7%) and higher rates of home health (HH) utilization (55.3%). However, variation in PO member HH utilization rates ranged from approximately 10% to 90%.

If you have feedback on your new PO joint replacement report or would like to request an additional custom analysis to better fit your needs, contact the Coordinating Center at Michigan-Value-Collaborative@med.umich.edu.

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Ambulatory Surgical Centers Transforming Surgery Market

Surgery in the United States is transforming, with as many as 70% of surgeries currently performed in an outpatient setting. Ambulatory Surgical Centers (ASCs) have grown significantly over the past decade and are now a critical part of the healthcare system. The Ambulatory Surgery Center Association now represents more than 6,000 centers across the United States. ASCs account for more than half of the outpatient surgery market with roughly 23 million procedures per year. The growth of these centers has had a significant impact on hospitals. As the number of ASCs has grown and hospital outpatient departments (HOPDs) have taken on fewer cases, many hospitals have elected to set up ASCs as part of their business.

This growth has been driven in part by greater scheduling flexibility and lower costs. Since most surgeries performed in outpatient settings are elective, patients are enabled to “shop” for their facility of choice prior to treatment. ASCs exclusively provide same-day surgical services that do not exceed 24 hours or require hospitalization. They are often – but not always – specialty-specific. Some of the most common specialties serviced by ASCs are orthopedics, pain, and ophthalmology (see Figure 1).

Figure 1.

A recent study of Medicare patients evaluated the scope of practice, number of patients treated, number of procedures, and revenue for ASCs. The study found that across the United States there was a 7% increase in the number of ASCs certified to service Medicare patients. In 2018 there was an 11% increase in the number of services performed and a 6.5% increase in patients. The median number of surgeries performed at each ASC was 1,050 per year. Payments collected rose from $3.6 billion in 2012 to $5.1 billion in 2018, with cataract surgery accounting for 24% of all payments. The study concluded that the increased revenue was most likely due to the increasing complexity of procedures being performed and, thus, higher reimbursement.

The increase in more complex surgeries at ASCs can most likely be attributed to better anesthesiology methods that allow for improved pain control and reduced post-operative recovery time, as well as new technologies and techniques that make surgeries safer and more comfortable. The Leapfrog Group identified over 50 different procedures performed across 10 disciplines in their 2022 ASC outpatient surgery fact sheet (see Figure 2).

Figure 2.

Associated with this rise in complexity is the need for ASC staff to accurately identify high-risk patients who are not appropriate candidates for ASCs. Many ASCs have created their own methods for identifying these high-risk candidates since there are no universal or ready-to-use published criteria. Although no preoperative screening system is perfect, the average national ASC transfer rate to an inpatient facility is just 0.42%, and in one study the use of a criteria checklist (see Figure 3) helped the facility achieve a 0.17% transfer rate.

Figure 3.

To assist the growing number of patients in their selection of a surgical provider, several organizations now publish evaluations about the quality and safety of various ASC facilities. For example, Newsweek published their rankings of "America's Best Ambulatory Surgical Centers" earlier this year in partnership with the global research firm Statista. The list spotlights 470 facilities in the 25 states with the most ASCs, with up to 10 ranked centers by state. Michigan's highlighted ASCs (see Figure 4) received scores of 74% - 83%, which was based on a "reputation score" and KPI data score.

Figure 4.

As ASCs continue to have a transformative impact on the surgery market, the Michigan Value Collaborative is interested in learning more about the metrics and data being utilized by these stand-alone or hospital-affiliated centers. If you have any information to share, please reach out to the MVC Coordinating Center at michiganvaluecollaborative@gmail.com.