NYU Langone reduced episode of care costs by 13.1% with bundled payment program for hip fracture arthroplasty

Practice Management

New York City-based New York University Langone Orthopedic Hospital researchers analyzed the effectiveness of a bundled payment initiative for hip fracture arthroplasty patients in a study in The Journal of Orthopaedic Trauma.

The study authors assessed patients discharged with the diagnosis-related group codes 469–470 performed for hip fractures between July 2011 and September 2014. A Bundled Payments for Care Improvement initiative was implemented at the hospital in October 2013. Sixty-one patients received care before the initiative and 44 patients were treated through the initiative.

Four things to know:

1. The average length of stay decreased from 6.8 days to 5.3 days.

2. The percentage of patients discharged home increased from 6.6 percent to 15.9 percent with the introduction of the BPCI initiative.

3. The study authors found a 13.1 percent reduction in total 90-day episode of care cost from $57,546 to $49,993.

4. There was no significant difference in readmission rate before and after the BPCI program was initiated.

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