Topics: Planning, Strategy, Orthopedics, Service Lines, Volume Growth, Service Line Growth
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By reading this study, members will understand:
- Key drivers of and barriers to growth in orthopedics
- Growth strategies for key procedures and sub-service lines
- Considerations for premium technology adoption
- Implications of risk-based payment models for orthopedics
Executive Summary
Expect volume growth—but with increased accountability
While the economic downturn has softened volume growth for many orthopedics programs, both inpatient and outpatient services are expected to grow respectably through 2015, driven by an aging population, growth in revisions, and intensifying market competition.
As a result of high-cost innovations, outmigration to ambulatory surgery, increasing payer scrutiny of procedure appropriateness, and health care reform, institutions also will see a higher level of accountability for high-quality, low-cost orthopedics care. To reach this goal, hospitals will need to:
- Develop a focused growth and marketing strategy
- Craft adoption principles for premium technology
- Transform the orthopedics service line infrastructure to succeed under increased performance risk
Crucial to align with specialists, market comprehensive services
Before aggressively pursuing volume growth in any service area, institutions must first assess their own profitability by aligning with high-value specialists who demonstrate consistent and efficient inpatient care.
Hospitals must then communicate their high-quality, patient-centered, comprehensive services to the marketplace—not only continuing to develop relationships with key referring physicians but also marketing orthopedics directly to consumers.
New innovations require principled assessment
Across the last decade, orthopedics programs have been hit with a barrage of new implants for spine, joint replacement, and trauma procedures. As new product introductions are not often met with a commensurate increase in reimbursement, programs must assess premium technology investments to ensure procedural margins.
In particular, orthopedic specialists, planners, and service line leaders must evaluate the purported incremental quality benefits of new technologies, along with their potential to expand markets for key demographics.
Reform and care redesign affect service line scope
The Patient Protection and Affordable Care Act introduces a number of risk-based payment experiments—such as bundled payments and shared savings—that increase performance risk for hospital-based orthopedics.
As payment reforms place increased risk on longer-term outcomes and per capita costs, institutions may need to extend the service line’s purview across a broader care continuum. This means standardizing the approach to consultation, preoperative education and pain management, and rehabilitation and discharge, as well as optimizing the surgical pathway to reduce complications and costs and improve quality and efficiency.
Access the study to learn more
Read Orthopedics: Service Line Strategic Outlook for a detailed analysis of the near-term forecast for orthopedic services, with a particular focus on growth strategy, technology adoption, and accountable care implications.
State of the Service Line
