Knee Surgery Study Highlights Economic Benefits of Medical Innovation
Too often, pundits and healthcare critics focus on healthcare costs without any consideration of the value gained from that investment.
- A recent study found that knee replacements saved society twice as much as they cost.
- The research appeared in an article in the August Journal of Bone and Joint Surgery, authored by Drs. Javad Parizi and John Tongue.
- Health leaders have often reminded those who harp on healthcare costs alone that the proper emphasis should be on value — whether healthcare consumers are getting the best value on their medical dollar.
Researchers discovered total savings to society of $12 billion. These savings are due to U.S. knee replacement surgeries in 2009.
- More than 600,000 total knee arthroplasties were done in the United States in 2009. The cost of each procedure averaged $20,635.
- Performing the knee replacement resulted in nearly twice as much in savings — $39,565 per patient, or a net savings of $18,930 apiece.
- The researchers considered direct and indirect costs, surgery and other treatment, as well as quality of life for patients.
- Most of the savings from undergoing knee replacement surgery — some 85 percent — derived from patients’ being able to get back to work and earn a living.
- The surgery also achieved 15 percent of the savings from reduced absenteeism and fewer disability payments.
This study illustrates the big picture, particularly the benefits gained from medical treatment by both patients and society.
- The article cited this surgery’s benefits to patients of more time for productive employment and extra earnings. For society, it’s savings from reducing the payouts in disability checks.
- The authors noted “the importance of using a societal perspective,” taking into account the benefits, in order to arrive at the value of medical spending.
- This perspective becomes even more critical as baby boomers age and more older Americans remain in the workforce for years past their 65th birthday.
- Some people have focused myopically on increasing numbers of knee surgeries and the associated costs. But if they push to restrict treatments like knee arthroplasty, they will inflict costs to society and patients alike.
- “The procedure is safe and effective, improving the quality of life for individuals with severe osteoarthritis of the knee.” That’s worth a lot more than mere dollar figures can show.
Health leaders certainly want to see a more cost-efficient healthcare system. But they also firmly believe in the value of health investment. The return on the investment in procedures like knee replacements should not be underestimated. The study’s authors warned that this “study demonstrates the potential for substantial negative societal effects if payers and policymakers unduly restrict access to appropriate total knee arthroplasty.” Health leaders urge policymakers to weigh these sorts of matters carefully and to give full consideration to the value factor.
