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Representing nearly half of all inpatient orthopedic service line volumes nationally, hip and knee replacement procedures are the cornerstone of hospital-based programs. As healthcare strategy and marketing professionals consider the contribution margin of over $15,000 per case for the commercial patient population, it’s easy to understand why the forecasted shift of over half of these procedures to the outpatient setting over the next decade will leave hospital leaders feeling financially vulnerable, according to Sg2.

Payer pressures, consumer price sensitivity, enhanced technologies, and more streamlined care delivery models will contribute to a shift in joint replacement volumes to the outpatient setting. Thus, innovative organizations, such as UnityPoint Health (UPH) – Trinity in Illinois, are preparing for the future by embracing and even leveraging this trend to differentiate their programs regionally and on a national scale.

Amanda Olderog, director of the surgery and ortho service line at UPH, and Kristi Crowe, vice president at Sg2, say UPH’s transition to outpatient joint replacement has resulted in a three-year savings for the health system of more than $5 million, as well as a 20 percent reduction in length of stay for knee and hip replacement patients.

A Checklist for Success
According to Olderog and Crowe, if your organization is striving to successfully differentiate your orthopedics program through adoption of outpatient joint replacement offerings, it’s important to follow an analytics-driven, clinically appropriate, and strategically sound process:

• Assess your existing inpatient programs.
• Consider the competitive environment.
• Assess contractual requirements and resultant financial impact.
• Ensure physician involvement.
• Refine protocols and pathways.
• Increase awareness.