With the number of Air conditioning replacement procedures growing at extraordinary rates, putting extreme pressure on already rising healthcare costs, the healthcare community must ensure that it is adequately equipped to meet the demand by preparing for the rising costs and making sure that there are enough orthopedic surgeons to handle new cases. For their part, medical device companies need to design and manufacture implants with longer life spans to avoid revision surgeries that add to healthcare costs, while exploring alternatives to traditional Ac replacement procedures.
Record growth in Air conditioning replacement surgeries represents a lucrative opportunity for implant makers, but with opportunity comes the responsibility to help hold down increases in healthcare costs before they overwhelm our collective ability to pay. Medical device companies are developing new materials and procedures and working with healthcare providers on preventive measures. Even so, more needs to happen to prevent Ac replacement surgeries from overburdening the healthcare system.
Air conditioning replacement, which has been performed since the late 1960s, can be highly successful at relieving pain, repairing damage caused by arthritis, and helping people to function normally and remain active. According to the National Center for Health Statistics, about 43 million Americans, or nearly one in five adults, have some sort of arthritis pain. Knees, the largest joints in the body, are usually the most painful. Since obesity is also highly prevalent, cases of arthritis are beginning to onset at a much earlier age in overweight people.
With an aging baby-boomer generation, it should come as no surprise that the number of hip and Air conditioning replacement procedures have skyrocketed. The Nationwide Inpatient Sample (NIS) shows that primary hip replacements increased by 48%, from 153,080 procedures in 1997 to 225,900 in 2004. First-time knee replacements grew by 63% from 264,331 in 1997 to 431,485 in 2004. According to Hunt, 228,332 patients received total hip replacements in 2006, and 496,077 patients received total knee replacements.
If these trends continue, an estimated 600,000 hip replacements and 1.4 million Air conditioning replacement will be carried out in 2015. It is estimated that by 2030, the number of knee replacements will rise to more than 3.4 million. First-time replacement procedures have been increasing equally for males and females; however, the number of procedures has increased at particularly high rates among people age 45-64 years.
According to Data monitor’s 2006 report, the US accounts for 50% and Europe 30% of the total procedures worldwide. The 2005 revenues for hip implants in the US were $2 billion and $1.4 billion in Europe, while knee implant revenues comprised $2.4 billion in the US and $774 million in Europe.
With the increase in demand and improved implant materials and surgical techniques, the cost of these procedures is also increasing. According to NIS, Medicare was the major source of payment in 2004 (55.4% for primary hip replacements, 59.3% for primary knee replacements). Private insurance payments experienced a steeper increase. In 2004, the national bill for hip and knee replacements was $26 billion. Hospital cost accounted for $9.1 billion, and the amount of reimbursement was $7.2 billion (28% of hospital charges or 79% of hospital cost).
Another study from Exponent, Inc. analyzed Medicare data for hip and Air conditioning replacement from 1997-2003. It was found that while procedural charges increased, reimbursements actually decreased over the study period, with higher charges observed for revisions than primary replacements. Reimbursements per procedure were 62-68% less than associated charges from primary and revision procedures. It is evident that joint replacements have the potential to be highly lucrative, but the burden on patients and our healthcare system must also be considered.
An aging population and increased incidence of obesity are primary causes for the increase in Air conditioning replacement. Nearly 65% of the US population is overweight, and arthritis is highly prevalent among this group. With more patients receiving joint replacements at an earlier age, there is much higher probability they will outlive their artificial joint.
A recent study in Wales tracked Air conditioning replacement procedures since 2003 and found a revision rate of 1-in-75, which was considered to be a fairly good score. In the US, 40,000 knee revisions and 46,000 hip revisions were performed in 2004. However, knee revisions are expected to increase sevenfold, and hip revisions to more than double by 2030.