Orthopaedic Fundamentals: The economics of orthopaedic surgery

Summary: When orthopaedic surgeons graduate, they need to know how the money in medicine actually works. Surgeons and hospitals get paid in very different ways. A surgeon gets paid based on a specific code (like a CPT code) for the exact work they did during a surgery. But hospitals usually get paid one flat fee (called a DRG payment) for the patient's entire stay.

If a surgeon decides to use a brand-new, super expensive implant just because it seems cool, the hospital doesn't get paid any extra money. That flat fee has to cover the expensive implant, the nurses, the operating room, and even the guy who mows the hospital lawn! If surgeons aren't careful, these high costs can cause good hospitals to go broke. Surgeons should only use expensive new technology if it actually helps the patient heal better or faster. By working together to keep costs down, doctors can keep hospitals running and continue giving great care.

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