We were working with Augusta Health’s Director of Business Analytics on a consulting project when he received an email from the Hospital’s Chief Medical Officer. The CMO wrote “Whoever gave me access to KREG - thanks; you have created everyone’s worst nightmare: a doc who can do cost accounting”.
The CMO had recently received training on our Decision Support and Cost Analytics systems (PLM). His first analysis centered on variances in drug costs among physicians performing the same orthopedics procedure. He discovered one doctor uses more than 3 times the amount of the least expensive doctor. Although it is still too early to quantify the results, the reports “woke-up some physicians” and they are starting to see a decline in the usage of the drugs.
According to a 2014 Health Affairs article, when orthopedic surgeons at six major health systems were asked to identify the cost of 13 commonly used orthopedic devices, fewer than one in five could estimate the actual cost within 20% accuracy. Further, despite a common narrative that doctors are only concerned about outcomes, more than 80% of those same doctors said if they have access to the information, they would consider cost as one of the key criteria in choosing a device.
For more information on Kreg's Decision Support and Cost Analytics click here