Costs & Cost Controls

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November 2025
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GAO: Modest effects from Value-based Purchasing program

Editor's Note A new Government Accountability Office report shows that hospital performance on most quality measures was improving before the Affordable Care Act’s Hospital Value-based Purchasing (VBP) program began in 2012 and has not noticeably changed since then, according to the AHA News. Most inpatient prospective payment system hospitals eligible…

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By: Judy Mathias
October 5, 2015
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Designing and implementing bundled payment program for total hips

Editor's Note A bundled payment program for total hip replacement was associated with similar total costs, lower posthospital costs, shorter length of stay, and similar or higher quality hospital care, in this study. Compared to controls, bundled payment patients had similar length of stay (3.0 vs 3.4 days), higher rates…

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By: OR Manager
September 28, 2015
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Shared-savings program for surgical supplies decreases costs

Editor's Note Incentivizing surgeons to standardize surgical supplies led to dramatic cost savings in this study. A shared-savings program that returned 50% of money saved on surgical supplies to the surgery division realized a total cost-savings of $893,865. A total of $446,932 was shared with 15 surgery divisions. Quality of…

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By: Judy Mathias
September 23, 2015
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ASCs playing bigger role in reining in costs

Editor's Note As the Affordable Care Act continues to pass more costs to patients through higher deductibles and premiums, ambulatory surgery centers (ASCs) are positioning themselves as cost-effective and convenient alternatives to traditional hospitals, the September 17 Central Valley Business Journal reports. ASCs provide efficient, high-quality procedures, and discharge home…

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By: OR Manager
September 17, 2015
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Variation in bariatric surgery costs may impact bundled payments

Editor's Note In this analysis of nearly 25,000 Medicare patients, mean total payments for bariatric surgical procedures varied from $11,000 to $13,000 per episode of care. The index hospitalization was responsible for 75% of total payments, followed by physician services (21%), and postacute care services (2.8%). As hospitals enter Medicare…

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By: OR Manager
September 16, 2015
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Medical schools including healthcare costs in curricula

Editor's Note Medical schools are beginning to teach students about healthcare costs and payment models as more patients enroll in high-deductible insurance plans and healthcare moves toward value-based care, according to a report by Kaiser Health News/KPCC/NPR. An Association of American Medical Colleges survey found that 129 of 140 responding…

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By: OR Manager
September 14, 2015
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Variation in surgical readmissions mostly patient related

Editor's Note Postoperative readmissions occurred in more than 1 in 10 patients, in this study, with considerable variation across specialties. The majority of variation was attributable to patient-related factors (82.8%); surgical specialty accounted for 14.5% of the variability, and individual surgeon factors accounted for 2.8%. After adjusting for patient and…

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By: OR Manager
August 10, 2015
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Effect of professional guidelines on preop testing

Editor's Note The release of 2002 guidelines on preoperative testing by the American Society of Anesthesiologists, American College of Cardiology, and American Heart Association was associated with a reduction in routine ECG testing but not of x-rays, hematocrit, urinalysis, or cardiac stress testing, in this study. Because routine preoperative testing…

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By: OR Manager
August 10, 2015
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ASA survey: Who bears responsibility for reducing healthcare costs?

Editor's Note A survey of members of the American Society of Anesthesiologists on the level of responsibility they perceive stakeholders to have in reducing the cost of healthcare and perioperative care delivery found: physicians bear “major responsibility” (38%) physicians bear “some responsibility” (58%) physicians bear “no responsibility” (4%) hospitals bear…

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By: OR Manager
July 31, 2015
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Efficient health information exchange could significantly lower costs

Editor's Note Including a health information exchange query into emergency department patient care could significantly reduce the number of tests ordered and reduce costs, finds this study. Efficient health information exchange was associated with a 52% reduction in lab tests and a 36% reduction in radiology exams per patient ordered…

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By: OR Manager
July 8, 2015
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