Prices- not utilization- continue to fuel the healthcare spending increases in the US.
Interventional Orthopedic Insights
From the Desk of Regenexx CEO Jason Hellickson
It’s The Prices (Stupid) and What You Can Do About It!
Uwe Reinhardt’s famously quoted article is as relevant today as it was almost two decades ago.
“It’s the Prices, Stupid.”
Prices, not utilization, continue to fuel the healthcare spending increases in the US. The cost of medical services, administration, and supplies is growing at a faster rate than actual utilization, projecting to increase at a rate of 6%, higher than previous years and growing at a faster rate than actual utilization.¹ In fact, utilization has hovered around zero percent growth since 2006.²
Faced with these rising costs, the current choices to defray expenses has been to shift expenses to employees, or decrease the benefits offered, with neither being a long term solution to manage the healthcare supply chain.
Use Your Data to Drive Plan Decisions and Design
Stacking the benefits plan with transparent and accountable healthcare options is the most effective way to impact the healthcare ecosystem and slow down costs. As purchasers and payers of healthcare, employers are also the architect as they drive decisions for plan design, coverage options and correctly incentivize plan members in the care most relevant to them. Self-funded plans allow for this kind of flexibility in structure and have the ability to customize benefits based on valuable data collected.
Orthopedic claims data represents one of the largest categories of expenses and is especially helpful to drive plan design decisions and coverage options that correctly incentivize plan members in the care most relevant to them. This kind of intentional plan design is where Regenexx can help employers tackle several of the largest diagnostic claims categories by adding a high value, lower cost approach to orthopedic wellness.
This kind of intentional plan design is where Regenexx can help employers tackle several of the largest diagnostic claims categories by adding a high value, lower cost approach to orthopedic wellness.
By identifying employees most likely to qualify for an elective orthopedic surgery and including Regenexx as part of the care continuum before orthopedic surgery is considered, employees can have an option in treatment while potentially avoiding surgery entirely.
Why Hospital-based orthopedic surgeons will never be able to reduce your orthopedic spend
“Regenexx is one of the first innovations we’ve seen that has had an impact on the orthopedic space. One of our clients that implemented Regenexx as a step therapy before surgery saw that the majority of patients who had a Regenexx treatment were able to avoid surgery altogether.”
-Wally Gomaa, CEO, ACAP
Adding the Regenexx Corporate Program to self-funded health plans is one of the most powerful methods to manage the pathway to orthopedic surgery so that surgery is only used when medically necessary.
In fact, over 50 percent of our clients have added Regenexx to a plan mid-year. We have seen significant increased utilization for this group because the Regenexx option in care does not get watered down during the open enrollment education process.