AAOS Responds: Physician Fees Didn't Cause Rising Healthcare Costs

The American Academy of Orthopaedic Surgeons has issued a response to a recent Health Affairs article comparing orthopedic surgeon compensation in the United States to other countries, showing that orthopedic surgeons in the United States are compensated at a much greater rate than their international counterparts. The statement points out that physician fees are a small piece of total healthcare costs, and Medicare payments for the physician services are 13 percent of all Medicare spending, according to the AAOS report. The Health Affairs article did not take this information into account, instead attributing the healthcare expenditure increase to physician payment rates.

Instead of increasing reimbursements to physicians since 2000, Medicare payment for hip replacements has actually decreased by 7 percent in nominal dollars and 32 percent in real dollars. The response also maintains that it is difficult to compare compensation rates across countries because there are too many variables.

AAOS also discussed its willingness to work with other healthcare stakeholders in reducing medical costs and improving quality of care through projects such as Medicare ACE.

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