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Cost Versus Benefit

One of the things I really hate thinking about is the cost of treatment. Frankly, dealing with insurance companies and the constant battle with bean counters just makes me flat out angry. My medical assistants know exactly what things make me grouchy, and this is the most obvious one. With that said, it is an interesting – maybe painful – exercise to look at the cost of what we do compared with the benefits. Let’s take a look at a case of mine with a very unscientific cost benefit analysis thrown in.

Mr. R was a 59-year-old diabetic who had undergone multiple prior left foot surgeries for infection and ulceration culminating in a Lisfranc amputation. Subsequent to the amputation, he had many wound healing attempts with ulcer recurrence and infection episodes. He was now seeing me for a chronic plantar neuropathic ulcer. See below for his clinical and radiographic extremity appearance.

He continued to ulcerate plantarlaterally due to the varus position of the residual foot and equinus of the ankle. I performed a tibiotalocalcaneal fusion with posterior tibial tenotomy and Achilles tendon lengthening with the results you’ll note below (the images are one month postop). I had offered him a below knee amputation, but he continued to desire limb salvage. The patient was admitted to the hospital postoperatively and spent nine days there due to pneumonia. He then spent 12 more days in a rehabilitation facility for his limb (not the pneumonia).

Clinically, I obtained an adequate result. The varus and equinus are gone. However, you’ll note the early plate failure with gaping at the medial aspect of the ankle joint and cantilevering of the plate. Despite this, the limb remains stable and has not worsened.

Now, let’s discuss the costs of all this versus the benefits. First, it’s important to note that there are two cost/benefit ratios to consider: (1) that of the patient and (2) that of the surgeon. The following dollar amounts are based off of the explanation of benefits forms provided to the patient by his insurance company (with the patient’s permission) that cover about one month of care.

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Let’s start this off with a multiple choice question for you to consider:

Which of the following is the actual payment to the surgeon?

a. $63,875.34
b. $1,822.42
c. $2,636.10
d. $14,808.00

Are you not surprised to find out that choice B is the answer? Probably not. My practice was paid $1,822.42. Choice A is what the hospital was paid. Choice C was the anesthesiologist’s bill (interesting that he was paid more than I was). Choice D was what the rehab facility was paid. I find it fascinating that of these four interested parties, the one that was actually managing the patient’s care (me) was paid the least.

Was it worth my time? I spent about five hours on the surgery, including the drive time to and from the hospital, waiting to start surgery, waiting for the anesthesiologist to ready the patient, and doing the actual case.

Do the math and you get the following: $1822.42/5 hrs = $364/hr. Does it sound good to you to make $364/hour? If I made that all the time, it would be $14,560/week, $58,240/month, and $698,880/year. I wish I made that much money!

Superbones Superwounds

But wait, think again…

If we compared this $364/hour to something nonsurgical, let’s say one pair of custom foot orthoses, it doesn’t look so great. My university practice charges $580 for custom foot orthoses. It takes me maybe 10 minutes with preparation to cast for orthoses. With one pair of orthoses in ten minutes, I brought in more money than one full hour of surgery. I would need to cast just over three patients (30 minutes of time) to bring in the same money that my five hour surgery brought. By the way, I didn’t consider a lot of other issues, such as the operative global period in which I’ve seen the patient weekly for a good portion of it with no reimbursement. I might spend as much time with the patient post-op as I did in the OR, all included in the surgical fee.

Clearly, it’s a more profitable use of physician time to be in the clinic than the operating room (at least to do these larger reconstructive cases). It’s a good thing I do surgery for reasons other than money!

So, if the cost-benefit relationship doesn’t benefit the doctor, how about the patient, since healing our patients is really the point to all this. If we consider the major costs paid by the insurance company, we would come up with the figure of $90,626.62. This is how much it cost for that first month of care from surgery to discharge home.

If we consider that a below knee amputation costs somewhere around $45,000 to $60,000, we could conclude that this patient’s surgery was not monetarily-speaking the right thing to do. The system would have saved a lot of money if we had simply amputated his leg.

But again, we’re not treating this patient’s wallet. We must consider the medical costs and benefits. Consider that there is a 50% risk of contralateral foot ulceration and 50% contralateral limb amputation within 2 to 5 years after below knee amputation1. Consider also that the 3 and 5 year survival rates after BKA are only 50% and 40%, respectively2.

Additionally consider that the energy cost of walking is significantly affected by the level of amputation. Waters and colleagues looked at velocity, cadence, stride length, and oxygen consumption in patients with above knee, below knee, and Symes amputations. They found improved indicators of gait and metabolic function with increasingly distal amputations3.

Finally, we know that patients have improved long-term survival with more distal amputations4,5,6. If we compare these diabetes-related limb complications with cancer, which was so beautifully done by Dr. Armstrong and shown below7, it seems justifiable to address this patient’s limb salvage as aggressively as we would treat cancer. In essence, the cost is more than justified by the medical benefits obtained by keeping the limb.

However, there are limits to this approach. Just as patients with cancer sometimes sadly reach a point where further treatment is not helpful, and hospice is the best choice, so too is the case with some of our limb salvage patients. Where that point is for limb salvage is much more difficult to determine, and until quality research is completed to help guide us, we will need to rely on our own judgment working with our patients to determine the best course of action. Cost versus benefit? It’s up to each of us to decide.

Best wishes,

Jarrod Shapiro, DPM
PRESENT Practice Perfect Editor
[email protected]
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References
  1. Larsson J, Agardh CD, Apelqvist J, et al. Long-term prognosis after healed amputation in patients with diabetes. Clin Orthop Relat Res. 1998;350:149-158.
  2. Moulik PK, Mtonga R, Gill GV. Amputation and mortality in new-onset diabetic foot ulcers stratified by etiology. Diabetes Care. 2003 Feb;26(2):491-494.
  3. Waters R, Perry J, Antonelli D, et al. Energy cost of walking amputees: the influence of level of amputation. J Bone Joint Surg. 1996 Jan;58:42-46.
  4. Mayfield JA, Reiber GE, Maynard C, et al. Survival following lower-limb amputation in a veteran population. J Rehabil Res Dev. 2001;38:341-345.
  5. Izumi Y, Satterfield K, Lee S, Harkless LB, Lavery LA. Mortality of first-time amputees in diabetics: a 10-year observation. Diabetes Res Clin Pract. 2009;83:126-131.
  6. Brown ML, Tang W, Patel A, Baumhauer JF. Partial foot amputation in patients with diabetic foot ulcers. Foot & Ankle Int. 2012 Sep;33(9):707-716.
  7. Armstrong D, Wrobel J, Robbins J. Guest Editorial: are diabetes–related wounds and amputations worse than cancer? Int Wound J. 2007;4(4):286-287.


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