Significant Differences in Health Care Costs for Spine Surgery

Costs for spinal fusion surgery in the United States vary substantially by region, with costs being lowest in the Midwest and highest in the Northeast, according to a study published in the September 1 issue of Spine.

The researchers analyzed 2012 Medicare data on the costs of anterior cervical discectomy and fusion (ACDF) and posterior lumbar fusion (PLF). For comparison, the costs of total knee arthroplasty (TKA) also were assessed. The analysis focused on direct costs, defined as the amount reimbursed to health care providers by Medicare or other payers. Most previous economic analyses of spinal surgery have focused on the amount billed by providers to payers.

Average national costs were about $14,000 for a single-level ACDF procedure and $26,000 for a single-level PLF. These total figures reflected combined professional and facility costs. Average cost for TKA was about $13,000, increasing to $22,000 for TKA in patients with other accompanying major medical conditions.

“Each procedure had a significant range in cost across the country,” said William Ryan Spiker, MD, Assistant Professor at the University of Utah in Salt Lake City. “This data sheds light on the actual cost of common surgeries throughout the United States, and will allow further progress towards the development of cost effective, value driven care.”

Costs for ACDF ranged from about $11,000 to $25,000, while PLF costs ranged from $20,000 to $37,000. For TKA patients without major medical conditions, the range was from about $11,000 to $19,000.

All procedures except ACDF also showed significant variations on the regional level, with the lowest costs in the Midwest and highest costs in the Northeast. For PLF, costs ranged from $24,000 in the Midwest to $28,000 in the Northeast. The figures were $12,000 versus $14,000 for primary TKA, and $21,000 versus $25,000 for TKA with major medical conditions.

On the state level, total costs for all 4 procedures were significantly correlated with the state’s cost of living index, but not with state population.

Spinal fusion procedures such as ACDF and PLF are a major source of costs for Medicare and other payers. From 2001 to 2010, an estimated 3.6 million spinal fusions were performed in the United States, with total charges of more than $287 billion.

The study does not show what’s behind the variations in cost, although state cost-of-living index is one related factor. Dr. Spiker and coauthors said, “In the pursuit of cost optimization, and the broader pursuit of value driven health care, it may prove valuable to study the factors that allow these states to deliver care at a lower cost.”

Costs for spinal fusion surgery in the United States vary substantially by region, with costs being lowest in the Midwest and highest in the Northeast, according to a study published in the September 1 issue of Spine.

The researchers analyzed 2012 Medicare data on the costs of anterior cervical discectomy and fusion (ACDF) and posterior lumbar fusion (PLF). For comparison, the costs of total knee arthroplasty (TKA) also were assessed. The analysis focused on direct costs, defined as the amount reimbursed to health care providers by Medicare or other payers. Most previous economic analyses of spinal surgery have focused on the amount billed by providers to payers.

Average national costs were about $14,000 for a single-level ACDF procedure and $26,000 for a single-level PLF. These total figures reflected combined professional and facility costs. Average cost for TKA was about $13,000, increasing to $22,000 for TKA in patients with other accompanying major medical conditions.

“Each procedure had a significant range in cost across the country,” said William Ryan Spiker, MD, Assistant Professor at the University of Utah in Salt Lake City. “This data sheds light on the actual cost of common surgeries throughout the United States, and will allow further progress towards the development of cost effective, value driven care.”

Costs for ACDF ranged from about $11,000 to $25,000, while PLF costs ranged from $20,000 to $37,000. For TKA patients without major medical conditions, the range was from about $11,000 to $19,000.

All procedures except ACDF also showed significant variations on the regional level, with the lowest costs in the Midwest and highest costs in the Northeast. For PLF, costs ranged from $24,000 in the Midwest to $28,000 in the Northeast. The figures were $12,000 versus $14,000 for primary TKA, and $21,000 versus $25,000 for TKA with major medical conditions.

On the state level, total costs for all 4 procedures were significantly correlated with the state’s cost of living index, but not with state population.

Spinal fusion procedures such as ACDF and PLF are a major source of costs for Medicare and other payers. From 2001 to 2010, an estimated 3.6 million spinal fusions were performed in the United States, with total charges of more than $287 billion.

The study does not show what’s behind the variations in cost, although state cost-of-living index is one related factor. Dr. Spiker and coauthors said, “In the pursuit of cost optimization, and the broader pursuit of value driven health care, it may prove valuable to study the factors that allow these states to deliver care at a lower cost.”

Costs for spinal fusion surgery in the United States vary substantially by region, with costs being lowest in the Midwest and highest in the Northeast, according to a study published in the September 1 issue of Spine.

The researchers analyzed 2012 Medicare data on the costs of anterior cervical discectomy and fusion (ACDF) and posterior lumbar fusion (PLF). For comparison, the costs of total knee arthroplasty (TKA) also were assessed. The analysis focused on direct costs, defined as the amount reimbursed to health care providers by Medicare or other payers. Most previous economic analyses of spinal surgery have focused on the amount billed by providers to payers.

Average national costs were about $14,000 for a single-level ACDF procedure and $26,000 for a single-level PLF. These total figures reflected combined professional and facility costs. Average cost for TKA was about $13,000, increasing to $22,000 for TKA in patients with other accompanying major medical conditions.

“Each procedure had a significant range in cost across the country,” said William Ryan Spiker, MD, Assistant Professor at the University of Utah in Salt Lake City. “This data sheds light on the actual cost of common surgeries throughout the United States, and will allow further progress towards the development of cost effective, value driven care.”

Costs for ACDF ranged from about $11,000 to $25,000, while PLF costs ranged from $20,000 to $37,000. For TKA patients without major medical conditions, the range was from about $11,000 to $19,000.

All procedures except ACDF also showed significant variations on the regional level, with the lowest costs in the Midwest and highest costs in the Northeast. For PLF, costs ranged from $24,000 in the Midwest to $28,000 in the Northeast. The figures were $12,000 versus $14,000 for primary TKA, and $21,000 versus $25,000 for TKA with major medical conditions.

On the state level, total costs for all 4 procedures were significantly correlated with the state’s cost of living index, but not with state population.

Spinal fusion procedures such as ACDF and PLF are a major source of costs for Medicare and other payers. From 2001 to 2010, an estimated 3.6 million spinal fusions were performed in the United States, with total charges of more than $287 billion.

The study does not show what’s behind the variations in cost, although state cost-of-living index is one related factor. Dr. Spiker and coauthors said, “In the pursuit of cost optimization, and the broader pursuit of value driven health care, it may prove valuable to study the factors that allow these states to deliver care at a lower cost.”