As healthcare professionals, it’s our responsibility to implement cost-effective measures while providing the highest quality of care for patients. Despite the veil of secrecy surrounding orthopedic implant costs within the healthcare industry, surgeons must become aware of the impact of implant pricing on surgical expenses.

By doing so, surgeons can make informed decisions that are not only best for their patients but also the financial health of their practice.

Complexity and Mystery Surrounding Orthopedic Implant Costs

Before we jump in, one obvious question is, do surgeons already know the cost of implants?

Let’s revisit research by the University of Maryland School of Medicine to give us some insight. The study asked physicians and residents at seven academic medical centers to estimate the costs of thirteen commonly used orthopedic devices. Price estimates falling within a 20% margin of the actual cost counted as correct responses.

Among the 503 physicians who participated in the survey, the results revealed that residents could accurately estimate the device cost only 17% of the time, while attending physicians fared slightly better at 21%.

Alarming findings emerged when examining participants’ self-reported knowledge of device costs – 36% of physicians and a staggering 75% of residents rated their understanding as “below average” or “poor.”

Importance of Surgeon Price Awareness for Orthopedic Implants

With those results in mind, the next logical question is, does it matter if the surgeons know the cost of the implants they’re about to use in surgery? Would it have an impact on their choices?

When asked, more than 80 percent of all respondents indicated that cost should be “moderately,” “very,” or “extremely” important in the device selection process. This overwhelming response confirms that surgeons need increased access to information on the relative prices of devices and should be incentivized to participate in cost-containment efforts. Price awareness is even more critical for those orthopedic surgeons with an investment stake in their Orthopedic ASC. 

Once surgeons have a clear understanding of implant costs, they are better equipped to perform accurate case costing. Just like business financial analysis, case costing in an Orthopedic ASC is essential to evaluate profitability and identify areas of improvement. This process includes analyzing various costs related to each surgical case, such as medical supplies’ cost, implant prices, physician fees, and facility overhead expenses such as OR time.

How Case Costing Improves Orthopedic ASC Profitability

Through strategic measures derived from case costing, Orthopedic ASCs can identify inefficiencies and optimize revenue. These strategic measures may include analyzing pricing strategies, resource allocation, supply chain optimization, and cost management strategies. 

Just as business financial analysis provides valuable insights into a company’s financial performance, case costing for surgeries provides valuable data for decision-making in Orthopedic ASCs. With a deep understanding of costs associated with each surgical case, Orthopedic ASCs can make informed decisions related to pricing, resource allocation, and cost management strategies, among others. This insight can lead to simple “go/no-go” statements or in-depth discussions about updating technology platforms, hiring new supply chain support, or revamping the clinical intake process. 

The importance of surgeon knowledge of orthopedic implant costs cannot be underscored, as it plays a significant role in improving case costing and optimizing revenue in Orthopedic ASCs. Understanding how case costing relates to financial analysis and decision-making is crucial in maximizing long-term success in orthopedic surgery centers. 

Uncovering Pricing Data for Orthopedic Implants

At Advantien, we understand the challenges faced by healthcare professionals in navigating the complexities of device cost estimation. Innovative solutions and comprehensive insights are pivotal in bridging this knowledge gap and empowering physicians to make well-informed decisions. 

Our mission is to provide the tools and resources needed to enhance cost awareness among healthcare professionals, enabling them to optimize patient care while simultaneously driving cost efficiency. Join us in embracing the power of accurate cost assessment and transformative change in the healthcare industry.