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Circulation. 1995;92:741-747

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*Angioplasty

(Circulation. 1995;92:741-747.)
© 1995 American Heart Association, Inc.


Articles

In-Hospital Cost of Percutaneous Coronary Revascularization

Critical Determinants and Implications

Stephen G. Ellis, MD; Dave P. Miller, MS; Kimberly J. Brown, RN; Nowa Omoigui, MD; Georgiana L. Howell; Michael Kutner, PhD; Eric J. Topol, MD

From the Departments of Cardiology (S.G.E., K.J.B., N.O., G.L.H., J.G., E.J.T.) and Biostatistics (D.P.M., M.K.), The Cleveland Clinic Foundation, Cleveland, Ohio.

Correspondence to Stephen G. Ellis, MD, The Cleveland Clinic Foundation, 9500 Euclid Ave, F-25, Cleveland, OH 44195.


*    Abstract
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Background Hospital charges associated with percutaneous transluminal coronary revascularization (PTCR) in the United States exceeded $6 billion in 1994 and are likely to be constrained in some manner in the near future. Despite this high cost to the public, little is known about the major determinants and sources of variability of PTCR.

Methods and Results From a consecutive series of 1258 procedures with attempted PTCR at a single tertiary referral center, we analyzed 65 clinical, angiographic, physician, and outcome variables as potential correlates of total (hospital and physician) cost. Direct and indirect costs, both hospital and physician, were determined on the basis of resource utilization using "top-down" methodology and were available for 1237 procedures (1086 patients) (98.3%). Mean (±SD) patient age was 62±11 years, 76% were male, 3% had acute myocardial infarction, 71% had unstable angina, 58% had multivessel disease, left ventricular ejection fraction was 54±12%, 26% had use of at least one nonballoon revascularization device, and median length of stay was 4.4 days. Procedural success was obtained in 89%, and major complications (death, bypass surgery, or Q-wave myocardial infarction) occurred in 3.8%. The median cost was $9176, but it was asymmetrically distributed, and the interquartile and total ranges were wide ($7333 to $13 845 and $3422 to $193 474, respectively). Analyses of independent correlates of cost and loge(cost) were performed using multivariate linear regression in training and test populations. Modeling found 15 independent preprocedural correlates of loge(cost) (R2=.37) and 23 overall correlates (R2=.65), excluding length of stay per se. Addition of length of stay to the model increased the explanatory power of the model to R2=.82. Preprocedural variables most predictive of loge(cost) included presentation with acute myocardial infarction, decision delay (>48 hours between admission and diagnostic angiography and/or >24 hours between angiography and intervention), weekend delay, use of intra-aortic balloon counterpulsation, intention to stent, creatinine >=2.0 mg%, and lesion complexity (modified American College of Cardiology/American Heart Association score) (all P<.001). In the model that included postprocedural variables as well, length of stay, noncardiac death, urgent bypass surgery, use of the Rotablator, Q-wave myocardial infarction, rise in creatinine >=1.0%, and blood product transfusion were all strong independent correlates of loge(cost) (P<.001).

Conclusions The range of total hospital costs associated with percutaneous intervention is extraordinarily wide. Baseline patient characteristics account for nearly half of the explained variance, but procedural complications and system delays account for much of the remainder. Quantification of the determinants of cost may promote more economically efficient care in the future.


Key Words: angioplasty • coronary disease • cost analysis


*    Introduction
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Coronary revascularization using balloon angioplasty was introduced in the United States in 1978. Remarkable growth of this procedure has ensued, in part because of its capacity to limit the symptoms of angina,1 and {approx}430 000 related procedures were predicted to be performed in 1994.2 With an expected hospital charge of $15 000 per procedure,3 a charge of more than $6 billion to the already sizable national medical bill will result. Despite this enormous expense, the variance and determinants of the true hospital cost of these procedures are poorly understood. With increasing constraints on spending, we sought to identify and model the critical determinants of cost of balloon angioplasty and related procedures.


*    Methods
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Patient Population
From November 1, 1992, through June 31, 1993, consecutive patients undergoing attempted treatment with any form of percutaneous mechanical coronary revascularization (balloon angioplasty, directional atherectomy, high-speed rotational atherectomy, extraction atherectomy, laser angioplasty, or stent implantation) at a single tertiary referral center were eligible for study entry. Baseline, treatment, and outcome data for all such patients were recorded prospectively and entered into an interventional database with sophisticated data validation, consistency checks, and other quality control assurance measures. All charts were subjected to an independent audit at or after the time of hospital discharge to ensure accurate coding of variables. System delays were identified and recorded prospectively by a single registered nurse. These patients were treated by 1 or more of 11 staff interventional cardiologists who performed 71 to 446 interventions annually and also performed other clinical and research duties to various degrees. Cost, clinical, and system delay data were available for 1237 of the 1258 eligible procedures (1086 patients; 98.3%).

Method of Determining Costs
Cost data were downloaded from the hospital cost accounting system (Transition System, Inc), a commercially available system that calculates total (hospital and physician) cost on a per-patient basis.4

Hospital costs may include disposable supplies, nonphysician labor, and indirect costs such as major capital depreciation and overhead. Disposable supply costs are based on actual acquisition costs. Nonphysician labor (nursing, fellows, secretaries, etc), including benefits, are obtained directly from actual salaries and apportioned as 55% variable (on the basis of duration of time spent in the catheterization laboratory, in intensive care, and on regular nursing floors) and 45% fixed per procedure. Indirect hospital costs (ie, major capital depreciation, overhead) are allocated on the basis of factors such as patient volume or square footage.

Direct physician costs are based on actual salaries and benefits of staff physicians as well as some nonprofessional staff. These costs are assigned on the basis of average labor time estimates for CPT codes. Indirect physician costs (ie, overhead, insurance) are also allocated on the basis of patient volume or square footage. Adjustment for the medical component of the Consumer Price Index was not applied because of the short time period studied and the minor contribution of inflationary change relative to other costs.

Statistical Methodology
Data are described by mean±SD, median and interquartile ranges, or percent, as appropriate.

Regression models of both cost and loge(cost) were built with a randomly selected training set of 60% of procedures. Forward and backward stepwise techniques were used to determine which variables made a significant additional contribution to the models. A type I error rate of 0.01 was used to protect against overfitting. Two-way interactions and some nonlinear terms were also considered after the significant main effects were determined.

Three distinct models of cost were developed: a predictive model using only data available at the beginning of the procedure and two explanatory models using all variables (one using length of stay as an independent variable and the other model excluding this parameter). After the models were validated at each step of the modeling process with the remaining 40% of the data, they were refit with the full data set.

Because of the nongaussian distribution of cost and the skewed residual from a linear model of untransformed cost data, modeling of loge(cost) was considered to be the preferred analysis. Only selected data regarding simple cost are presented. The independent contribution of each variable in the models was calculated and was also expressed as the percent cost effect (% mean increase in cost for a patient with a given characteristic compared with that of another otherwise identical patient).

The 1237 procedures were performed on 1086 patients. For those patients with two procedures, the residual loge(cost) of the first procedure was not at all predictive of the residual loge(cost) of the second procedure (r=-.01, P=.92). Therefore, the use of multiple procedures from the same individual was allowed for the multiple regression models, and the standard errors and probability values from these models do not require adjustment.

All modeling was performed with SAS software.

Definitions
Most variables analyzed have been defined previously5 or need no definition. Those that are new to the interventional cardiology literature or particularly germane to this study are listed below.

Delayed decision was defined as a delay >48 hours between the time of hospitalization and the decision whether or not the patient should undergo diagnostic angiography and/or delay of >24 hours between the time of diagnostic angiography and intervention due to uncertainty as to whether or not the patient should be treated with percutaneous revascularization.

Lesion morphology was defined as the most complex (modified American College of Cardiology/American Heart Association lesion classification6 ) lesion with attempted treatment. For numerical analysis, type C lesions were given 3 points, type B2 lesions were given 2 points, and types B1 and A lesions were coded with 1 point.

Number of diseased vessels was defined as the number of major epicardial vessels or bypassable branches thereof (left anterior descending, left circumflex, and right coronary arteries; maximum of three) with >=50% diameter stenosis (measured with calipers).

Scheduling delay was defined as a delay of >24 hours between the time a patient already in the hospital was referred for treatment and the time the treatment was performed (due to specific physician unavailability or the laboratory schedule being full).

Weekend delay was defined as a scheduling delay solely because the catheterization laboratory is not routinely open for elective procedures on weekends and major holidays.

The following variables not shown in the accompanying tables were also analyzed but did not correlate with cost: age, arteriovenous fistula, evaluation as nonbypassable, heart rate, hematoma >15 cm, New York Heart Association heart failure class, physician provider, prior infarction, pseudoaneurysm, retroperitoneal hemorrhage, sex, stroke, systolic blood pressure, and unstable angina.


*    Results
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Patient Characteristics
Selected characteristics of the patients studied are enumerated in Table 1Down. Patients were in many ways typical of other groups undergoing coronary intervention,7 8 although the high incidence of unstable angina and use of nonballoon technologies are notable. The training and test samples were not significantly different for any variable tested. In-hospital clinical outcomes are described in Table 2Down and are typical of those currently reported.7 8


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Table 1. Baseline Patient Characteristics (n=1086)


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Table 2. In-Hospital Clinical Outcomes (n=1237)

Costs
The total hospital and physician costs had a nongaussian distribution with a median of $9176, mean of $13 071±12 667, interquartile range of $7333 to $13 845, and total range of $3422 to $193 474. The low-end costs result from unsuccessful, uncomplicated, and therefore outpatient procedures, wherein a minimum of resources was used. A breakdown of costs by resource center is provided in Table 3Down.


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Table 3. Cost Breakdown (in $1000) (n=1175)

Correlates and Models of Cost
Preprocedural Correlates of Loge(cost)
The independent preprocedural correlates of loge(cost) are enumerated in Table 4Down. This model accounted (R2) for 37% of the total variation in cost. Of this, 31% was described by clinical (notably treatment for acute myocardial infarction, intra-aortic balloon counterpulsation, and creatinine >=2.0 mg%) or angiographic (lesion complexity) variables, an additional 6% by hospitalization or decision delays, and 5% by the device approach chosen (stenting, Rotablator, or transluminal extraction catheter or directional atherectomy). No physicians5 were identified with significantly higher or lower costs.


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Table 4. Cost Effect of Preintervention Risk Factors Including Delays (n=1214)

Overall Correlates of Loge(cost)
The independent correlates of loge(cost) in the two explanatory models of cost are shown in Tables 5Down and 6Down. Inclusion of postprocedural variables such as complications increased the explanatory power of the model considerably (to R2=.82 if length of stay is included and to R2=.65 if length of stay is not included). Postprocedural variables that made substantial contributions to these models included length of stay per se, noncardiac death, rise in creatinine, urgent bypass surgery, blood product transfusion, and resultant Q-wave myocardial infarction.


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Table 5. Cost Effects of Preintervention and Postintervention Risk Factors Including Delays but Not Including Total Length of Stay (n=1214)


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Table 6. Full Multiple Regression Model (n=1213)

Many variables were, by themselves, also correlated with loge(cost) but were dropped from the models because they were highly correlated with other variables that were more closely correlated with loge(cost). An example of this problem of multicollinearity can be seen with the variable of unstable angina. As a single variable, unstable angina was highly correlated with loge(cost) (P<.001). However, unstable angina was correlated also with heparin use before treatment (perhaps reflecting particularly unstable symptoms) (r=.16, P<.001) and recent myocardial infarction (r=.15, P<.001), each of which was more strongly correlated with increased loge-(cost). In multivariate testing, the variable of unstable angina was therefore not a significant correlate of cost (Table 4Up). In a somewhat analogous manner, in the full explanatory model wherein the variable length of stay was included (Table 6Up), many variables correlated with length of stay and with loge(cost) that appeared in the model when length of stay was not tested (Table 5Up) were dropped when length of stay was included in the model (Table 6Up). Examples of these dropped variables include postprocedural non–Q-wave myocardial infarction, large hematoma, and weekend delay. Data in Tables 5Up and 6Up therefore define variables most helpful in explaining the causes of increased cost, whereas data in Table 4Up define variables useful in predicting cost. All three of these analyses are important in understanding the determinants of cost for these procedures.


*    Discussion
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The need to restrain the rate of increase of medical costs in the United States is well recognized, and high-volume, high-cost procedures such as coronary angioplasty and related techniques are obvious targets for scrutiny. Unfortunately, the determinants of cost with these procedures are poorly understood.

Most studies of this problem to date have dealt with hospital charges and charge ratios, not cost,9 10 11 12 13 14 largely because the charges are much more readily available and true costs not easily derived. However, internal cost shifting and cross-subsidization, such as "marking up" the charges for laboratory tests to compensate for lower reimbursement of other items,15 are common and may obfuscate the true determinants of cost. In such a study of 2392 patients from a single institution, Weintraub et al16 found that while postprocedural outcomes such as death, infarction, emergency surgery, and length of stay together were quite well correlated with charges, the variables available before the procedure explained <5% of the charge variance. One would infer from these data that the best way (and the only way from these data) to reduce resource utilization would be to decrease the ischemic complications of angioplasty and related techniques. In this study, detailed clinical characteristics, system inefficiencies (eg, delays in decision making, weekend admissions), and nonischemic complications were not examined. Topol et al3 described considerable geographic and institution type (training program versus community hospital) differences in charges from a large insurance database beyond what might be expected from differences in major procedural complications, but the data set was limited in the potential covariates available, and the determinants of charges could not be fully explored. Dick and colleagues13 specifically examined the added charges of new device therapies and found significant increments over balloon angioplasty with both new modalities examined (elective stent placement, +$6354, P<.001, and directional atherectomy, +$2368, P<.01). The incremental costs with directional atherectomy were substantiated in the randomized multicenter CAVEAT I trial14 but were challenged by Cohen et al17 in an observational series from a single institution. Cohen et al did note, however, a substantial increase in cost with stent implantation compared with balloon angioplasty alone.

The data reported here extend prior observations by noting, in particular, (1) the predictive information contained in variables available before the procedure, which explains nearly one third of the variance of cost (Table 4Up); (2) the importance of system-related problems, such as delays in therapy due to lack of availability of some hospital services on weekends or protracted decision-making (Table 4Up); and (3) the high cost of noncardiac complications such as progressive renal dysfunction, blood transfusion, and peripheral vascular complications (Table 5Up). The lesser correlation with preprocedural data found in prior reports may derive from the relatively weak correlation between cost and common variables such as unstable angina and left ventricular ejection fraction. Variables such as baseline creatinine and the need for balloon counterpulsation or heparin therapy appear to be better markers for resource consumption. In addition, other variables found to be important in this analysis, such as weekend delays, blood product usage, and need for vascular surgical repair of access site–related complications, may not have been considered in previous studies.

Implications for Cost Containment
The message from this analysis, and to a certain extent from others,16 is that a reduction in in-hospital complications should lead to a corresponding reduction in hospitalization cost. A substantial literature describes the complications of balloon angioplasty18 19 20 and newer devices,21 22 23 24 25 26 yet it is not at all certain whether use of new nonballoon technologies will decrease complications for most patients.16 Paradoxically, higher-than-standard doses of heparin27 and also use of more potent antiplatelet agents28 have recently been reported to reduce the ischemic complications of angioplasty, yet they also appear to be associated with increased bleeding,28 29 so their net effect on cost is uncertain.

A recent analysis from the EPIC investigators suggests that, discounting the cost of 7E3 itself, the cost effects from the reduction in ischemic events and increase from bleeding complications with this agent largely cancel each other out.30

Vascular "plugs" may have a role in reducing bleeding complications, but most reports suggest only a reduction in time to ambulation.31 Finally, the use of nonionic contrast has been touted as a means to reduce postprocedure renal insufficiency, but this remains highly controversial,32 33 and nonionic contrast itself is not inexpensive.

One simple way to reduce costs would be to refrain from treating high-risk patients (acute myocardial infarction, poor renal function, multivessel disease, diabetes). Few substantive data are available to determine whether or not percutaneous revascularization is of clinical benefit for many of these patients, but it has generally been shown that revascularization tends to be most beneficial for those patients with poor prognosis,34 35 36 37 and this is supported by nonrandomized data comparing percutaneous transluminal coronary angioplasty and medical therapy.38 If revascularization is thought to be needed and percutaneous and surgical options are considered likely to be equally efficacious, costs may well be similar over a follow-up of several years.39 In the current medical-economic climate, if clinical benefit is likely, cost reduction by avoiding patients likely to have high hospital costs would not be palatable to most patients and physicians.

New devices (eg, stents, lasers) and also standard balloon technologies (including guide catheters, wires, etc) themselves directly contribute about 18% of total hospital cost of the procedure (Cleveland Clinic Foundation, unpublished data), and some (eg, lasers) add substantially to indirect cost. The present analysis suggests that per se, the use of the transluminal extraction coronary atherectomy device, stents, the Rotablator, and to a lesser extent, directional atherectomy all add to cost, whether or not procedural complications are considered. Hence, newer and more expensive devices should be used only in situations in which clinical superiority over balloon catheters is expected or if a long-term reduction in cost might be expected (eg, stents40 41 ). Even balloon catheters, however, are expensive ($300 to $750 each). In many countries, this cost is divided among several patients because the device is sterilized and reused, but such use is not approved in the United States. Although this practice is untested, it remains to be seen whether or not reuse of angioplasty equipment would dramatically reduce cost. Preliminary data suggest a longer procedure time and perhaps more complications with reused balloons.42

Finally, this analysis suggests that system delays also contribute greatly to increased costs. It would be prudent to perform a formal cost analysis at individual hospitals to ascertain whether or not a reduction in patient cost could be achieved by opening the catheterization laboratory for routine weekend use. Whether such an approach would outweigh the associated increase in overtime costs and possible reduction in staff morale would need to be established. In addition, incentives or "care paths" to encourage timely decision-making regarding the need for cardiac catheterization and/or intervention might well reduce costs.

Limitations
This study should be viewed in the context of several limitations. First, the number of patients studied is somewhat limited and is derived from the experience of a single institution. These findings should be compared with those from other institutions, with perhaps other practice and resource consumption patterns, as they become available. Second, the study makes no attempt to compare the costs of percutaneous revascularization with other forms of therapy or to compare in a randomized fashion one percutaneous therapy against the next; thus, it is not a cost-benefit analysis but is rather a cost-minimization analysis that we hope will provide insight into how costs might be reduced in a single resource utilization area. Third, the long-term cost of patient care is not considered, and the possibility that a high initial expenditure might lead to reduction in subsequent costs should not be ignored.

Conclusions
The in-hospital costs associated with caring for patients undergoing percutaneous revascularization vary widely and have multiple correlates. Markers of the severity of cardiac illness, noncardiac comorbidities, and system delays account for 37% of the total cost variance, and another 28% results from induced complications. Only 18% of the variance remains unexplained by the models derived from this analysis. Characterization of the major determinants and variability of hospital cost for percutaneous coronary revascularization may translate into strategies for meaningful reductions in resource utilization.



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Figure 1. Bar graph showing median unadjusted in-hospital costs for patients treated with the devices noted. *P<=.05, **P<=.01 compared with balloon angioplasty in multivariate modeling. DCA indicates directional coronary atherectomy; TEC, transluminal extraction coronary atherectomy.

Received October 25, 1994; revision received February 1, 1995; accepted February 19, 1995.


*    References
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*References
 

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