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Much of the disparity occurs due to the rising cost of physician preference items. According to the report, hospitals spend $17.4 billion annually on PPIs, which is 40 percent or more of the procedure cost. The report gathered data on high-volume procedures from not-for-profit hospitals around the country.
Here is the difference between the low Medicare payment and high cost to the hospital of top orthopedic and spine procedures:
• Spinal fusions: $13,092
• Spinal procedures: $6,361
• Cervical spinal fusions: $4,532
• Back and neck procedures: $3,324
• Hip/knee replacements: $5,623
Approximate total payment shortage, or loss, for hospitals on each procedure in 2010:
• Spinal fusions: $45.6 million
• Spinal procedures: $25.2 million
• Cervical spinal fusions: $85.5 million
• Back and neck procedures: $75 million
• Hip/knee replacements: $665.9 million
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