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1164143

research-article2023
FAOXXX10.1177/24730114231164143Foot & Ankle OrthopaedicsAlexander et al

Article

Foot & Ankle Orthopaedics

Cost Analysis and Reimbursement of


2023, Vol. 8(1) 1­–6
© The Author(s) 2023
DOI: 10.1177/24730114231164143
https://doi.org/10.1177/24730114231164143

Weightbearing Computed Tomography journals.sagepub.com/home/fao

Nathaniel B. Alexander, MD1, Shumaila Sarfani, MD2 ,


Carson D. Strickland, MD3, David R. Richardson, MD1 , G. Andrew Murphy, MD1 ,
Benjamin J. Grear, MD1, and Clayton C. Bettin, MD1

Abstract
Background: Weightbearing computed tomography (WBCT) is becoming a valuable tool in the evaluation of foot and
ankle pathology. Currently, cost analyses of WBCT scanners in private practice are lacking in the literature. This study
evaluated the costs of acquisition, utilization, and reimbursements for a WBCT at a tertiary referral center, information of
particular interest to practices considering obtaining such equipment.
Methods: All WBCT scans performed at a tertiary referral center over the 55-month period (August 2016 to February
2021) were retrospectively evaluated. Patient demographics, pathology location, etiology, subspecialty of the ordering
provider, and whether the study was unilateral or bilateral were collected. Reimbursement was calculated based on payor
source as a percentage of Medicare reimbursement for lower extremity CT. The number of total scans performed per
month was evaluated to determine revenue generated per month.
Results: Over the study period, 1903 scans were performed. An average of 34.6 scans were performed each month. Forty-
one providers ordered WBCT scans over the study period. Foot and ankle fellowship-trained orthopaedic surgeons ordered
75.5% of all scans. The most common location of pathology was the ankle, and the most common etiology was trauma. The
device was cost neutral at 44.2 months, assuming reimbursement for each study was commensurate with Medicare rates. The
device became cost neutral at approximately 29.9 months when calculating reimbursement according to mixed-payor source.
Conclusion: As WBCT scan becomes more widely used for evaluation of foot and ankle pathology, practices may be
interested in understanding the financial implications of such an investment. To the authors’ knowledge, this study is the
only cost-effectiveness analysis of WBCT based in the United States. We found that in a large, multispecialty orthopaedic
group, WBCT can be a financially viable asset and a valuable diagnostic tool for a variety of pathologies.
Level of Evidence: Level III, diagnostic.

Keywords: weightbearing computed tomography (CT), foot and ankle, cost analysis, reimbursement, acquisition and
utilization, CT scanner, Medicare

Introduction 1
Department of Orthopaedic Surgery and Biomedical Engineering,
Weightbearing CT (WBCT) is a technology that has shown University of Tennessee Health Science Center—Campbell Clinic,
utility in the evaluation and treatment of foot and ankle Memphis, TN, USA
2
Ortho San Antonio, San Antonio, TX, USA
pathologies. Initially used commercially in maxillofacial 3
Mid Tennessee Bone and Joint, Columbia, TN, USA
imaging in the 1990s, cone-beam imaging involves a coni-
cal X-ray beam and a flat image intensifier that rotates Corresponding Author:
Clayton C. Bettin, MD, Campbell Clinic Department of Orthopaedic
around an anatomic region of interest. Algorithms are used
Surgery and Biomedical Engineering, University of Tennessee Health
to translate data into 3-dimensional (3D) models from Science Center, Memphis, Tennessee, Campbell Foundation, 1211 Union
which reconstructions of orthogonal planes can be made. Ave, Suite 510, Memphis, TN 38104, USA.
The data collected from a cone beam CT scanner can also Email. cbettin@campbellclinic.com

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-
NonCommercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction
and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages
(https://us.sagepub.com/en-us/nam/open-access-at-sage).
2 Foot & Ankle Orthopaedics

be used to create traditional radiographic projections with- years), with 206 patients being under the age 18 years. The
out having to take multiple images. Recent studies have average number of scans performed per patient was 1.12
demonstrated that WBCT can provide more accurate infor- (range of 1-5). During the 55-month collection period, 1903
mation on the 3D relationships of osseous structures of the WBCTs were performed, of which 101 were bilateral stud-
foot and ankle than radiographs or conventional CT scans ies. An average of 34.6 scans were performed each month
and require less time for image aquisition.21 WBCT also (range 18-50 scans). Forty-one providers from 9 subspecial-
exposes patients to significantly lower doses of radiation ties used the device. Five foot and ankle fellowship-trained
than conventional CT scans, although estimates of true radi- surgeons ordered 1438 studies over the collection period,
ation exposure vary.4,15,20 The smaller footprint of WBCT yielding an average of 26.6 scans per month. Other special-
and decreased need for shielding make it a convenient tech- ties that significantly used the device were physical medi-
nology to incorporate into in-office radiology departments. cine and rehabilitation/physiatry (126 studies) and pediatric
As WBCT becomes more widely used in orthopaedic prac- orthopaedics (86 studies). The provider who ordered each
tice, understanding the costs related to its acquisition and study would follow the patient unless they had pathology
reimbursements will be of increasing interest. that necessitated evaluation by a fellowship-trained foot
To the authors’ knowledge, no cost analyses of WBCT and ankle surgeon. A breakdown of WBCT ordered by spe-
in the United States have been reported in the literature. cialty can be seen in Figure 1. Physician assistants (PAs)
The primary purpose of this study was to evaluate the cost were not broken down by subspecialty for the purposes of
of utilization of a WBCT in a tertiary referral, physician- this study.
owned practice. Secondarily, the utilization of WBCT When WBCT use was evaluated based on location of
based on orthopaedic subspecialty, location, and etiology pathology, 8.5% (152/1898) was for forefoot pathology,
of pathology was investigated. 25.7% (488/1898) for midfoot pathology, 27.6 (525/1898)
for hindfoot pathology, and 38.1 (723/1898) for ankle
pathology. The most common disease processes evaluated
Materials and Methods
by WBCT in this cohort were trauma (54%, 981/1816),
After obtaining institutional review board approval, all degenerative diseases (30%, 546/1816), fusion/healing
WBCT scans performed from the time of initial acquisition assessment (10%, 179/1816), congenital/developmental
of the device on August 16, 2016, through February 19, anomalies (4%, 67/1816). Tumors, hardware evaluation,
2021, were retrospectively analyzed. Age, patient gender, arthroplasty evaluation, and ulcers accounted for <1% each.
pathology location and etiology, unilateral vs bilateral (11/1816, 9/1816, 9/1816, and 14/1816, respectively).
imaging, subspecialty of the ordering provider, and payor The procurement cost was $179000 for the device,
source were collected. The location of the primary pathol- $30000 for the extended warranty, and $995 for 1-time
ogy was categorized into ankle (tibiotalar joint), hindfoot licensing fees, giving a total of $209995. Staffing costs
(transverse tarsal joint to subtalar joint), midfoot (tarso- were negligible as the device is run by already employed
metatarsal to transverse tarsal joint), and forefoot (distal to radiology technicians during normal business hours; thus,
tarsometatarsal joints). The pathology was further catego- there is minimal to no additional cost in salary or employee
rized as trauma, developmental, degenerative (including hours. The daily number of scans is low; thus, we surmise
Charcot), tumor, fusion/healing, ulcer, or hardware evalua- that most groups with in-house radiology would be able to
tion. Sprains and stress fractures were categorized under use this technology without having to increase staffing.
trauma for evaluation purposes. If multiple sites of signifi- To allow for ease of analysis and applicability of infor-
cant pathology were noted, both locations and pathologies mation across orthopaedic practices, Medicare reimburse-
were counted. The payor source was categorized as private ment of $163.50 for Current Procedural Terminology
insurance, self-pay, worker’s compensation insurance, (CPT) code 73700, Diagnostic Radiology (Diagnostic
Medicare, or Medicaid. Costs associated with device acqui- Imaging) Procedures of the Lower Extremities, was used as
sition and maintenance were obtained from a pro forma a baseline for compensation. Private insurance, workers’
analysis performed prior to purchase. The device used in compensation insurance, and self-pay reimbursements were
this practice was a PedCat WBCT scanner, with a cost of estimated to be 180% of Medicare, yielding $294.30 in
$179000 including in the extended warranty, which cost reimbursement per scan. Medicaid was calculated to be
$30000. 61% of Medicare reimbursement, resulting in $99.74 per
scan. These values were calculated after a review of the lit-
erature comparing reimbursement of Medicare vs private
Results
insurance and Medicare vs Medicaid for in-hospital and
This study included 1704 unique patients. Fifty-four per- out-of-hospital services.1,14 These values do have heteroge-
cent (920 patients) were female, and 46% (784 patients) neity based on geographic area and a health system’s nego-
were male. Ages ranged from 6 to 92 years (average age 44 tiated prices with insurance providers; however, the authors
Alexander et al 3

Figure 1. Utilization of weightbearing CT scanner by provider specialty. Foot and ankle–trained providers used the device most
commonly, followed by nonoperative sports, physical medicine and rehabilitation/physiatry (PM&R), and pediatric orthopaedic surgery.

Payor source:

% 0% 1
15% 19% Medicare
5% Private Insurance
Worker's Compensaon
Medicaid
Self Pay
61%

Figure 2. Payor source. The majority of patients in our study were privately insured (1101/2802), followed by Medicare (340/1802),
Medicaid (262/1802), worker’s compensation (95/1802), and self-pay (4/1802).

thought that these multipliers were conservative enough to fee was then paid to the radiology group interpreting the
be widely applicable.1,14 Each CPT code was billed for the images. Thus, the technical component of a CT scan per-
global fee; a contracted fee consisting of 16% of the global formed on a Medicare-insured patient would net $137.34, a
4 Foot & Ankle Orthopaedics

privately insured, workers’ compensation, or self-pay increased income from 19 to 58 euros per patient. The
patient would net $247.2, and a Medicaid insured patient increased income per patient in these studies was primarily
would net $83.79. the result of decreased staffing costs for image acquisition as
Regarding payor source, 61% (1101/1802) of patients only 15.1% of their cohort was not insured by a single payor
were privately insured, 19% (340/1802) were Medicare system and generated income directly from the imaging ser-
insured, 15% (262/1802) were Medicaid insured, and 5% vices. WBCT was also used as the primary imaging modal-
(95/1902) were under worker’s compensation (Figure 2). ity at this institution during the study period, leading to
Based on an average number of 34.6 scans per month, the comparatively high volumes of WBCT’s being performed.
WBCT scan generated $4751.96 in gross revenue, assum- The authors believe that WBCT is a useful adjunct to plain
ing Medicare-only reimbursement rates for all scans, and radiographs of the foot and ankle, but it has not become the
$7014.08 per month gross revenue based on mixed-payor primary imaging modality at this institution.
source reimbursement specific to the authors’ institution. Limitations of this study include a lack of a standard
Based on these amounts, it would take 44.2 months to protocol for imaging of foot and ankle injuries in our
pay off the device at Medicare reimbursement rates and group. Additionally, our study primarily serves as a case
29.9 months to pay off the device on mixed-payor reim- example of one institution’s experience with WBCT from
bursements. It should be noted that this time frame will vary primarily a reimbursement perspective. Differences in
significantly based on each institution’s payor mix distribu- personnel cost were not evaluated. Many factors vary
tion and the total number of scans ordered. across the country and individual institutions that should
To earn back the total cost of the device, 1529.0 scans be considered, including number of providers in the area
would have to be performed at Medicare-only reimburse- or group that would contribute to the number of scans per
ment rates, and 1035.9 scans would have to be performed month, payor mix, and insurance contracts for reimburse-
at mixed-payor rates. For the purposes of this study, we ments, to name a few. This study was performed at a ter-
amortized the initial and ongoing costs over a 60-month tiary referral center with 5 foot and ankle–trained surgeons;
period and found that 25.48 scans were needed per month smaller practices may have issues using the technology
to break even, assuming all-Medicare reimbursement or enough for it to be financially viable. To allow for wide
17.26 scans using our institution’s payor mix. If the repay- applicability across practice settings, the multiplier for the
ment were amortized over a 120-month period, 12.74 scans reimbursement paid by private insurance in comparison to
per month for all Medicare reimbursement and 8.63 scans Medicare was set at 180% for this study. A review of the
for mixed payors would be required for the device to literature showed that this value ranges from 161% to
become cost neutral. Assuming an average life span of 358%, so this value may vary widely based on contract
10 years for the machine, that leaves a profit of $360240.68 negotiations between practices and insurers; however, we
to $631694.29. These figures disregard some benefits and thought that 180% would provide a broadly applicable and
potential cost savings, including the ability to more accu- appropriately conservative estimate.1,14 When evaluating
rately template and plan for procedures, decreased time to the financial viability of using a similar device, readers
accurate diagnosis, and personnel savings associated with would be encouraged to base it on the regional or group-
reduction in time required to obtain imaging compared specific reimbursement rates.
with standard foot and ankle radiographs.2,3 This calcula- Future areas of study include further evaluation of cost
tion may also underestimate the increased costs associated efficacy, more accurate assessment of reimbursement for
with operating the machine over years 6 to 10. The device non-Medicare carriers, evaluation of costs associated with
at this institution has been in use for 7 years without sig- operating the device. Evaluating the effect of WBCT on
nificant issue. length of patient encounters and time between imaging
being ordered and the study being performed, as well as,
patient perception of WBCT vs traditional imaging modali-
Discussion ties could be future areas of study. Comparison of the num-
To the authors’ knowledge, no studies exist evaluating the ber of CT’s ordered prior to implementation of WBCT in
cost effectiveness of WBCT in a US-based orthopaedic this center vs after would be another area of interest. WBCT
practice. Several studies based on a large patient cohort in has shown to be a cost-effective tool for the evaluation of
Europe have been published; however, these results have lower extremities at this institution. The technology has
limited applicability in the United States because of the sig- benefits over traditional helical CT scans in evaluating the
nificant differences in reimbursements and health care foot and ankle under physiologic loads, the primary benefit,
expenditures between the European Union (EU) and US however, likely stems from the convenience of having this
health care systems. Richter et al2,17-19 demonstrated that technology available in office for use instead of traditional
WBCT decreased the time to image acquisition by 12 min- CT for nonweightbearing studies. The lower radiation dose
utes per patient, decreased average radiation exposure, and and ease of image acquisition may lead to more studies
Alexander et al 5

being performed; however, the literature has yet to bear out ORCID iDs
whether this leads to more accurate diagnosis. This modal- Shumaila Sarfani, MD, https://orcid.org/0000-0003-3861-4481
ity has not replaced standard radiographs but has proven to David R. Richardson, MD, https://orcid.org/0000-0002-7184-
be a valuable addition to diagnostic imaging at this tertiary 5233
referral center. G. Andrew Murphy, MD, https://orcid.org/0000-0001-8914-
9992
Clayton C. Bettin, MD, https://orcid.org/0000-0003-1540-3526
Conclusion
Based on the authors’ experience, WBCT appears to be a References
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