Hospital Economics of Primary Total Knee Arthroplasty at a Teaching Hospital

Description: Questions/purposes The purposes of the current study were to (1) determine revenue, expenses, and profitability (loss) for TKA for all patients and for different payors; (2) define changes in utilization and unit costs associated with this operation; and (3) describe TKA cost control strategies to provide insight for hospitals to improve their economic results for TKA.
Conclusions During the last 25 years, our economic experience with TKA is concerning. Hospital revenues have lagged behind inflation, hospital expenses have been reduced, and our institution is earning a profit. However, the margin for TKA is decreasing and Managed Medicare patients do not generate a profit. The erosion of hospital revenue for TKA will become a critical issue if it leads to economic losses for hospitals or reduced access to TKA.
Hospital Economics of Primary Total Knee Arthroplasty at a Teaching Hospital William L. Healy, Adam J. Rana & Richard Iorio CORR 2010 Volume 469, Number 1, 87-94