Implementing an enhanced recovery from surgery pathway to reduce hospital length of stay for primary hip or knee arthroplasty: a budget impact analysis.

Background: Given growing demand for hip and knee arthroplasty and unsustainable resource requirements, safe and efficient models of care are critical. This study aims to determine the impact on healthcare costs of implementing an enhanced short-stay model of care (ESS-MOC) for arthroplasty at a national level.

Methods: A budget impact analysis was conducted for the years 2023-2030 in the setting of Australian publicly and privately funded hospitals performing hip or knee arthroplasty. The model considered population-based future arthroplasty projections, published data on healthcare costs and resource utilisation, and aggregate health insurer claims data related to minor complexity elective hip or knee arthroplasty for osteoarthritis. The ESS-MOC assigned a conservative hypothesized 30% of eligible patients to an enhanced recovery from surgery (ERAS) pathway which comprised a shortened acute ward stay (average 2 days versus 4 days with current care) and outpatient rehabilitation. The primary outcome was total healthcare cost savings post-ESS-MOC implementation, stratified by joint (knee/hip) and healthcare sector (public/private). Return on investment (ROI) ratio, measuring the return for each dollar invested in implementation, and hospital bed days utilized, were also estimated. Costs are presented in Australian dollars (AUD), at 2023 prices.

Results: Estimated cost savings for 2023-2030 from implementing the ESS-MOC pathway were AUD641 million (95% CI: AUD99 million to AUD1250 million), corresponding to a ROI ratio of AUD8.88 (AUD1.3 to AUD17.9). Total implementation costs for the ESS-MOC were estimated at AUD38 million and AUD34 million for the private and public sectors, respectively. Savings would be 8-fold higher in the private sector (AUD571 million vs. AUD70 million in the public sector), primarily attributable to the > 80,000 rehabilitation bed days saved annually in this sector. For the period 2023-2030, an estimated 337,000 (261,000 to 412,000) acute bed days could be saved (private sector 262,000 [200,000 to 324,000]; public sector 74,000 [57,000 to 92,000]). Less than 10% of eligible patients would need to move into the ERAS pathway to realise cost savings.

Conclusions: Implementation of an enhanced short-stay model of care for eligible arthroplasty patients in Australia would generate significant cost and resource savings, particularly for the private hospital sector.