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Home/Legal & Regulatory and Reimbursement/Midwest Orthopaedics at Rush Offering Package Pricing
Legal & Regulatory and Reimbursement

Midwest Orthopaedics at Rush Offering Package Pricing

May 24, 2016 2 min read Premium comments

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Midwest Orthopaedics at Rush Offering Package Pricing
Courtesy of Midwest Orthopaedics at Rush
Secondary

The leaders at Midwest Orthopaedics at Rush (MOR) listened to the needs of the people, and it has now become one of the first orthopedic groups in the country to offer package pricing. This flat fee payment option is for treating some of the most common orthopedic conditions. And, in what they are calling an “unprecedented move, ” MOR is also listing the price structure on their website for patients to see.

According to the May 16, 2016 news release there are five surgical procedures that are included in the MOR Package Pricing: anterior cruciate ligament (ACL) repair, hip arthroscopy, knee arthroscopy, rotator cuff repair (arthroscopic) and shoulder arthroscopy. Services provided in this program are not billed to any third parties or insurance plans.

“We listened to our patients and determined a need to offer quality orthopedic care for affordable prices—especially for those who are uninsured or have high deductibles, ” explained Nikhil Verma, M.D., MOR shoulder and knee surgeon and team physician for the Chicago White Sox and Chicago Bulls. “With our new package pricing, one fixed payment covers all surgeon, facility and anesthesia fees; supplies and implants; and uncomplicated follow-up care. Patients won’t be monitoring their mailboxes for another bill because our program has transparent pricing and no hidden fees.”

Some expenses not included in the MOR Package Pricing include: preoperative diagnostic tests, travel expenses, durable medical equipment and physical therapy.

MOR CEO Dennis Viellieu told OTW, “MOR is committed to the nation’s broader shift to value-based healthcare. We want to provide patients with another option to seek out high-quality and affordable orthopedic care. In general there has been an increase in high deductible and narrow network health insurance plans. We have also seen a rise in our international and out-of-state patient populations, who may experience barriers to accessing sub-specialized orthopedic surgeons. The development of the package prices removes these barriers and for patients who are facing high deductibles and a limited list of providers, it gives them an opportunity to be treated by top orthopedic surgeons (ranked No. 6 in the nation by U.S. News & World Report) and a cash-pay option.”

As for why they decided to put their pricing online, he noted, “Pricing in healthcare is often a black box. By putting our pricing online, we are helping to improve the overall transparency within the healthcare market. From a patient perspective, this also improves the overall experience. Typically patients receive multiple bills to cover the various services provided during surgery. With the package pricing model, patients are given upfront and complete information.”

“The fee includes implants and medical devices used for surgical treatment. I would not anticipate much fluctuation in this area. These patients will receive the same high-quality care we provide to all of our patients.”

React:

Discussion

14
DS
Dr. Sarah MitchellOrthopedic Surgeon · Mayo Clinic

This is a fascinating development. In my practice we've seen similar outcomes with the revised protocol. The key differentiator seems to be patient selection criteria. Has anyone else noticed the correlation with BMI thresholds?

8
JT
James Thornton, MDSpine Fellow · HSS

Great point. I'd push back slightly on the conclusion, the sample size in the cited study is too small to draw population-level inferences. That said, the directional signal is compelling and worth a larger RCT.

5
RP
R. PatelSports Medicine · Stanford

We implemented a similar approach last year. Early results are promising but we're still gathering 12-month follow-up data. Happy to share our protocol if anyone is interested.

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