Declining Service Labor Rates for Total Hip and Total Knee Arthroplasty in Medicare Patients

Background: Total hip (THA) and knee arthroplasty (TKA) are highly successful surgeries, but reimbursement for these procedures has decreased due to relative value unit scale devaluation and Medicare cuts. The shift to outpatient joint replacements has increased workload for orthopaedic surgeons and...

Full description

Saved in:
Bibliographic Details
Main Authors: John M. Dundon, MD, FAAOS, Nicholas Brown, BS, Jennifer Escobar, BS, RN, Paul M. Lombardi, MD, FAAOS
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:Arthroplasty Today
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2352344125001293
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849473520426287104
author John M. Dundon, MD, FAAOS
Nicholas Brown, BS
Jennifer Escobar, BS, RN
Paul M. Lombardi, MD, FAAOS
author_facet John M. Dundon, MD, FAAOS
Nicholas Brown, BS
Jennifer Escobar, BS, RN
Paul M. Lombardi, MD, FAAOS
author_sort John M. Dundon, MD, FAAOS
collection DOAJ
description Background: Total hip (THA) and knee arthroplasty (TKA) are highly successful surgeries, but reimbursement for these procedures has decreased due to relative value unit scale devaluation and Medicare cuts. The shift to outpatient joint replacements has increased workload for orthopaedic surgeons and office staff while saving Medicare costs. This study evaluates 3 groups of orthopaedic surgeons to determine their hourly rate for Medicare total joints. Methods: We categorized 3 groups of orthopaedic surgeons by operative time and efficiency to assess hourly rates. Group 1 performs 2-3 cases daily, group 2 performs 4-5 cases, and group 3 performs 10+ cases. We evaluated total operative time based on historical data and Centers for Medicare & Medicaid Services guidelines for preoperative and postoperative time. Results: For group 1, average times for THA and TKA were 400 minutes ($188.89/hour) and 408.5 minutes ($184.92/hour). Group 2's times and hourly rates for THA and TKA were 401.5 minutes ($188.18/hour) and 404 minutes ($190.68/hour). Group 3 had total times of 300.5 minutes ($251.50/hour) for THA and 300.25 minutes ($256.57/hour) for TKA. Conclusions: With decreasing actual rates and even further decline in inflation adjusted reimbursement and increasing practice costs, some surgeons may have to consider discontinuation of or minimizing TKA and THA in Medicare patients to maintain financial viability.
format Article
id doaj-art-36601da33a6e4ab0bb8d59cefc56026f
institution Kabale University
issn 2352-3441
language English
publishDate 2025-06-01
publisher Elsevier
record_format Article
series Arthroplasty Today
spelling doaj-art-36601da33a6e4ab0bb8d59cefc56026f2025-08-20T03:24:07ZengElsevierArthroplasty Today2352-34412025-06-013310174210.1016/j.artd.2025.101742Declining Service Labor Rates for Total Hip and Total Knee Arthroplasty in Medicare PatientsJohn M. Dundon, MD, FAAOS0Nicholas Brown, BS1Jennifer Escobar, BS, RN2Paul M. Lombardi, MD, FAAOS3Orthopedic Research Institute of New Jersey, Chester, NJ, USA; Morristown Medical Center, Morristown, NJ, USA; Corresponding author. Orthopedic Research Institute of New Jersey, 8 Pond View Rd, Chester, NJ 07930, USA. Tel.:+1 614 288 1393.Orthopedic Research Institute of New Jersey, Chester, NJ, USAAtlantic Health Systems, Morristown, NJ, USAMorristown Medical Center, Morristown, NJ, USA; Tri-County Orthopedics, Cedar Knolls, NJ, USABackground: Total hip (THA) and knee arthroplasty (TKA) are highly successful surgeries, but reimbursement for these procedures has decreased due to relative value unit scale devaluation and Medicare cuts. The shift to outpatient joint replacements has increased workload for orthopaedic surgeons and office staff while saving Medicare costs. This study evaluates 3 groups of orthopaedic surgeons to determine their hourly rate for Medicare total joints. Methods: We categorized 3 groups of orthopaedic surgeons by operative time and efficiency to assess hourly rates. Group 1 performs 2-3 cases daily, group 2 performs 4-5 cases, and group 3 performs 10+ cases. We evaluated total operative time based on historical data and Centers for Medicare & Medicaid Services guidelines for preoperative and postoperative time. Results: For group 1, average times for THA and TKA were 400 minutes ($188.89/hour) and 408.5 minutes ($184.92/hour). Group 2's times and hourly rates for THA and TKA were 401.5 minutes ($188.18/hour) and 404 minutes ($190.68/hour). Group 3 had total times of 300.5 minutes ($251.50/hour) for THA and 300.25 minutes ($256.57/hour) for TKA. Conclusions: With decreasing actual rates and even further decline in inflation adjusted reimbursement and increasing practice costs, some surgeons may have to consider discontinuation of or minimizing TKA and THA in Medicare patients to maintain financial viability.http://www.sciencedirect.com/science/article/pii/S2352344125001293MedicareTotal knee arthroplastyTotal hip arthroplastyEfficiency
spellingShingle John M. Dundon, MD, FAAOS
Nicholas Brown, BS
Jennifer Escobar, BS, RN
Paul M. Lombardi, MD, FAAOS
Declining Service Labor Rates for Total Hip and Total Knee Arthroplasty in Medicare Patients
Arthroplasty Today
Medicare
Total knee arthroplasty
Total hip arthroplasty
Efficiency
title Declining Service Labor Rates for Total Hip and Total Knee Arthroplasty in Medicare Patients
title_full Declining Service Labor Rates for Total Hip and Total Knee Arthroplasty in Medicare Patients
title_fullStr Declining Service Labor Rates for Total Hip and Total Knee Arthroplasty in Medicare Patients
title_full_unstemmed Declining Service Labor Rates for Total Hip and Total Knee Arthroplasty in Medicare Patients
title_short Declining Service Labor Rates for Total Hip and Total Knee Arthroplasty in Medicare Patients
title_sort declining service labor rates for total hip and total knee arthroplasty in medicare patients
topic Medicare
Total knee arthroplasty
Total hip arthroplasty
Efficiency
url http://www.sciencedirect.com/science/article/pii/S2352344125001293
work_keys_str_mv AT johnmdundonmdfaaos decliningservicelaborratesfortotalhipandtotalkneearthroplastyinmedicarepatients
AT nicholasbrownbs decliningservicelaborratesfortotalhipandtotalkneearthroplastyinmedicarepatients
AT jenniferescobarbsrn decliningservicelaborratesfortotalhipandtotalkneearthroplastyinmedicarepatients
AT paulmlombardimdfaaos decliningservicelaborratesfortotalhipandtotalkneearthroplastyinmedicarepatients