It is no surprise that healthcare costs in the U.S. are exceedingly high. Hospitals are tasked with finding ways to managing costs and stay profitable while also transitioning into new payment reform models.
Steve Lamb, vice president and lead partner at Memphis, Tenn.-based Implant Partners, writes while hospitals and healthcare organizations across the spectrum are finding innovative ways to adapt to the changes, but orthopedic departments have more stake in cutting supply chain costs and managing overall spend.
In orthopedic departments, physician preference items can account for 30 to 40 percent of hospital expenditures, and up to 60 percent of supply chain expenses, Mr. Lamb writes, citing a Healthcare Financial Management Association and UHC joint report.
Due to its high worth, orthopedic departments are ideal environments for implementing shared savings. By collaborating and incentivizing payers, providers and patients, all parties benefit.
"Hospitals that introduce shared savings programs see numerous benefits," Mr. Lamb writes. "By bringing payers, providers and hospital decision-makers together for the purposes of selecting therapies and modalities of medicine, these programs also introduce the means for measuring and quantifying the outcomes of those practices. As a result, hospitals reduce supply chain costs, surgeons share in a portion of savings and patients receive the same quality of care at a lower price."
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