06/29/2021    

PODIATRISTS AND COST CONTAINMENT

CO Podiatrist Discusses Push for Cost-Effective Implants

 

Both hospitals and ASCs are refining orthopedic implant purchasing processes after the pandemic placed financial pressure on healthcare organizations last year. The move to a more value-based healthcare system also increases scrutiny on the high-cost items, such as instruments and implants. Organizations are also bringing surgeons into the decision-making process on a regular basis when signing new vendor contracts. "Trends I anticipate are continued cost containment and the push for 'cost-effective' implants and techniques. Patient outcomes and technology improvement unfortunately takes a back seat to profits," says Alan Ng, DPM.

 

Dr. Alan Ng

 

"In the past, cost was the driving force for limitations on new products in the ASC setting and if the cost of an implant was high, we would take the case to the hospital since their contracts were better and covered the implants. We are now seeing a trend that even the hospitals are being very restrictive on new products even though they have better contracts. I'm assuming they would rather the physician use 'cost-effective' implants to increase their margins on cases. It is becoming difficult to innovate and improve using new technology due to cost controls and facilities looking for better margins in an environment where reimbursement is constantly changing and unfortunately usually going down," says Dr. Ng.

 

Source: Laura Dyrda, Becker's Spine Review [6/25/21]