Background:
Percutaneous coronary intervention (PCI) is a common and expensive procedure that has become a target for bundled payment initiatives. We described the magnitude and determinants of variation in 90-day PCI episode payments across a diverse array of patients and hospitals.
Methods and Results:
We linked clinical registry data from PCIs performed at 33 Michigan hospitals to 90-day episodes of care constructed using Medicare fee-for-service and commercial insurance claims from 1/2012-10/2016. Payments were price-standardized and risk-adjusted using clinical and administrative variables in an observed-over-expected framework. Hospitals were stratified into quartiles based on average episode payments. Payment components between the highest and lowest quartiles were compared to identify drivers of variation (i.e. index hospitalization/procedure, readmissions, post-acute care, professional fees). Among 40,925 90-day PCI episodes, the average risk-adjusted 90-day episode payment by hospital ranged between $22,154 and $27,205 with a median of $24,696 (IQR: $24,190-$25,643). Hospitals in the lowest and highest quartiles had average episode payments of $23,744 and $26,504, respectively (difference: $2,760). Readmission payments were the primary driver of this variation (46.2%), followed by post-acute care (22.6%). Readmissions remained the primary driver of variation in key subgroups including inpatient and outpatient PCI, as well as PCI for acute myocardial infarction (AMI) and non-AMI indications.
Conclusions:
Substantial hospital-level variation exists in 90-day PCI episode payments. Over half the variation between high and low payment hospitals was related to care after the index procedure, primarily due to readmissions and post-acute care. Hospitals and policymakers should consider targeting these components when developing initiatives to reduce PCI-related spending.