The use of physician preference items varies significantly, leading to waste and lost cost-savings, according to a study released by United Healthcare.
The study, which began in 2013, involved investigating the use of physician preference items at 10 academic medical centers, focusing on procedures using orthopedic implants, coronary and peripheral stents and cardiac valves.
The study found that:
1. Custom made items do not necessarily result in better quality. A surgeon at one of the organizations often used customized implants for patients undergoing hip replacements. The price of just the implant was higher than the average Medicare reimbursement for the entire hospital stay.
2. Unused devices result in hidden waste. At one hospital, a physician was wasting an average of $600 per hip implant procedure as a result of opened but unused implants.
3. Not every device is for every patient. At one organization, physicians were consistently using more advanced hip implant components for older patients than those used for younger patients. However, published research shows that standard components are more clinically appropriate for less-active patients.
"Our study reinforces that there is a clear need for healthcare organizations to have an integrated view of supply costs and patient outcomes in resource-intensive areas, such as orthopedic and cardiovascular care," said Mike Oinonen, senior director, CDI Operations, Product Technology at UHC.