Effects of Standardized Pricing for Distal Radius Implants

Document Type : RESEARCH PAPER

Authors

1 Rothman Orthopaedic Institute at Thomas Jefferson University, Philadelphia, PA, USA

2 Philadelphia Hand to Shoulder Center, Philadelphia, PA, USA

10.22038/abjs.2025.84630.3878

Abstract

Objectives: Critical evaluation of implant costs may help mitigate the cost of orthopedic care. In an effort to decrease the financial burden of operative fixation for fractures of the distal radius, a standardized shelf price was established by a large orthopedic practice for all distal radius implants. We hypothesized that by negotiating a fixed reduced cost, total number of screws, number of locking screws, and number of wasted screws would be unchanged and overall implant utilization would not change.
Methods: This was a retrospective analysis of the effect implant price standardization had on the operative care of distal radius fractures at a single outpatient urban surgical center. The total number of screws, as well as the number discarded during each procedure was reviewed. We analyzed the financials three months before and three months following price standardization. We surveyed the ten fellowship trained hand surgeons affected by the change regarding differences in operating procedure and perceived changes in the attendance and utility of the manufacturer’s representative.
Results: We reviewed 30 distal radius open reduction internal fixations three months before and 28 cases three months following shelf price implementation. On average, there was a 32% reduction in total implant costs after price standardization. No statistically significant difference in any clinical variables were noted. Negligible change was noted in the surgeon experience in representative availability and surgery-related attributes on the survey. 20% of surgeons switched implants due to the cost restrictions.
Conclusion: Despite a set price for distal radius implants, there was no significant difference in the number of screws utilized or discarded after price standardization. Additionally, despite a 32% reduction in cost, the level of representative attendance and utility were similar before and after the change. Surgeons are willing to be flexible in implant choices based on a cost restriction model.
        Level of evidence: III

Keywords

Main Subjects


  1. Meyers SJ, Reuben JD, Cox DD, Watson M. Inpatient cost of primary total joint arthroplasty. J Arthroplasty. 1996;11(3):281-285. doi:10.1016/s0883-5403(96)80079-9.
  2. Robinson JC, Pozen A, Tseng S, Bozic KJ. Variability in costs associated with total hip and knee replacement implants. J Bone Joint Surg Am. 2012;94(18):1693-1698. doi:10.2106/JBJS.K.00355.
  3. Okike K, O'Toole RV, Pollak AN, et al. Survey finds few orthopedic surgeons know the costs of the devices they implant. Health Aff (Millwood). 2014;33(1):103-109. doi:10.1377/hlthaff.2013.0453.
  4. Bosco JA, Alvarado CM, Slover JD, Iorio R, Hutzler LH. Decreasing total joint implant costs and physician specific cost variation through negotiation. J Arthroplasty. 2014;29(4):678-680. doi:10.1016/j.arth.2013.09.016.
  5. Beredjiklian PK. Shelf Pricing for Distal Radius Fracture Implants. Clin Orthop Relat Res. 2017;475(3):595-596. doi:10.1007/s11999-016-5165-9.
  6. Brauer CA, Neumann PJ, Rosen AB. Trends in cost effectiveness analyses in orthopaedic surgery. Clin Orthop Relat Res.

 

        2007;457:42-48. doi:10.1097/BLO.0b013e31803372c9.

  1. Daigle ME, Weinstein AM, Katz JN, Losina E. The cost-effectiveness of total joint arthroplasty: a systematic review of published literature. Best Pract Res Clin Rheumatol. 2012;26(5):649-658. doi:10.1016/j.berh.2012.07.013.
  2. Kuye IO, Jain NB, Warner L, Herndon JH, Warner JJ. Economic evaluations in shoulder pathologies: a systematic review of the literature. J Shoulder Elbow Surg. 2012;21(3):367-375. doi:10.1016/j.jse.2011.05.019.
  3. Mather RC 3rd, Wysocki RW, Mack Aldridge J 3rd, Pietrobon R, Nunley JA. Effect of facility on the operative costs of distal radius fractures. J Hand Surg Am. 2011;36(7):1142-1148. doi:10.1016/j.jhsa.2011.03.042.
  4. Bruce KK, Merenstein DJ, Narvaez MV, et al. Lack of Agreement on Distal Radius Fracture Treatment. J Am Board Fam Med. 2016;29(2):218-225. doi:10.3122/jabfm.2016.02.150233.
  5. Chung KC, Spilson SV. The frequency and epidemiology of hand and forearm fractures in the United States. J Hand Surg Am. 2001;26(5):908-915. doi:10.1053/jhsu.2001.26322.