Appendix 2 Diagnosis and treatment for medial meniscal tear [knee] - ICD9CM Diagnosis code 836.0 - assessment of costs of finding the same yield of positive patients Standard of Care versus VSI diagnosis and treatment paradigm - costs using 2013 reimbursement data Number of diag. & ther. procedures performed for ICD9CM Diagnosis code 836.0 = 502,200 derived from positive findings (TP and FP) for MRI Number of diagnostic procedures performed for ICD9CM Diagnosis code 836.0 = 258,709 derived from negative findings (FN and TN) for MRI Number of diag. & ther. procedures performed for ICD9CM Diagnosis code 836.0 = 468,531 derived from positive findings (TP and FP) for VSI Number of diagnostic procedures performed for ICD9CM Diagnosis code 836.0 = 291,919 derived from negative findings (FN and TN) for VSI Procedure code CPT 99203 Description Evaluation and management - new patient - 30 minutes CPT 73560 Xray 1-2 views CPT 73721 SOC Cost $108.19 Notes VSI Cost $108.19 $32.32 $32.32 Magnetic resonance (eg, proton) imaging, any joint of lower extremity; without contrast material, non-facility (RVUs of 11.91) (Global) $405.21 $0.00 CPT 73721-26 Magnetic resonance (eg, proton) imaging, any joint of lower extremity; without contrast material, non-facility (RVUs of 1.96) (Professional component "-26") $66.69 $0.00 CPT 20610 Arthrocentesis - aspiration or injection major joint or bursa @ 10% of time for diagnosis (1) $65.56 $0.00 CPT 29870 Arthroscopy, knee, diagnostic, with or without synovial biopsy (separate procedure) - nonfacility setting $0.00 $603.23 1 Notes CPT 29881 $551.51 $551.51 $131.55 $131.55 Hospital outpatient - knee arthroscopy/surgery Evaluation and management - existing patient - 30 minutes Total cost per patient (for positive findings) Total cost per patient (for neg findings) [diagnostic procedures only) Number of surgical procedures performed based on diagnostic findings = Number of people who are medically managed (e.g. PT) due to FN findings= Number of diag procedures performed based on neg findings = $2,111.62 $72.81 $2,111.62 $72.81 $3,486.46 $618.97 502,200 91,024 258,709 $3,611.23 $743.74 468,531 27,258 291,919 Total cost to system for diagnosis and treatment (positives) = Total cost to system for diagnosis of a negative finding = Cost per patient for medical management [PT](10.6 sessions over 10 wks) = Number FN patients who have insurance (@85% of FN) = Total costs to system for medical mgmt (physical therapy) of FN findings on MRI = Percent of patients under medical mgmt crossing over to surgery(2) Number of patients who crossed over (CO) to surgery in FN group = Cost of FN medical mgmt patients crossing over to surgery = Number of patients who underwent phys ther post surgical arthroscopy (@85%) = Costs for patients under physical therapy post surgery for TP, FP, and FN results = Total costs diagnosis and treatment (all positive and negative findings)= Cost per patient diagnosis & treatment = $1,750,898,203 $159,847,970 $1,318 77,370 CPT 01440 Arthroscopy, knee, surgical; with meniscectomy (medial OR lateral, including any meniscal shaving) including debridement/shaving of articular cartilage (chondroplasty), same or separate compartment(s), when performed General anesthesia (assumes 45 minutes) APC 0041 CPT 99213 2 $101,941,382 30% 27,307 $74,710,861 450,081 $593,016,082 $2,680,414,497 $3,525 (TP +FP) (FN) (FN+TN) (TP + FP) (FN+TN) (FN) (FN) (FN CO) (TP+FP+FN CO) (TP+FP+FN CO) $1,691,973,203 $217,111,837 $1,318 23,169 $30,527,314 30% 8,177 $21,777,479 (TP +FP) (FN) (FN+TN) (TP + FP) (FP+TN) (FN) (FN) (FN CO) (TP+FP+FN 398,251 CO) (TP+FP+FN $524,726421 CO) $2,486,116,254 $3,269 Costs for a complication based on procedure being performed Complications for arthroscopy procedures Reoperation (any reason) [includes costs of CPT 29871 & APC 0041] Venous thromboembolism (VTE) [includes 12 month for treatment] Deep vein thrombosis (DVT) [includes 12 month for treatment] Pulmonary embolism (PE) [includes 12 month for treatment] Number of arthro procedures which complications were applied to = Occurrence of complications based on incidence and number of procedures Reoperation (any reason) [includes costs of CPT 29871 & APC 0041] Venous thromboembolism (VTE) Deep vein thrombosis (DVT) Pulmonary embolism Overall costs for complications Reoperation (any reason) [includes costs of CPT 29871 & APC 0041] = Venous thromboembolism (VTE) = Deep vein thrombosis (DVT) = Pulmonary embolism = Total costs complications = Cost complications per patient for those exposed to arthroscopy = Total costs - diagnosis, therapeutics, and complications = Cost differential complications (which costs more and by how much) = Overall cost per patient = Incidence 0.30% 0.19% 0.12% 0.08% Cost/event $2,633.53 $14,865.00 $14,865.00 $22,900.00 Incidence 0.010% 0.131% 0.083% 0.055% Cost/event $2,633.53 $14,865.00 $14,865.00 $22,900.00 529,593 1,237,158 1,589 1,006 636 424 124 1,623 1,025 684 $4,183,419 $14,955,137 $9,445,349 $9,700,572 $38,284,477 $72 $2,718,698,975 $177,232,047 $3,575 $325,809 $24,131,344 $15,240,849 $15,652,671 $55,350,674 $45 $2,541,466,927 $3,342 Footnotes: (1) National Ambulatory Medical Care Survey data 2010 - 10% figure based on 2010 figures for arthrocentesis for meniscal knee injury (100,000/970,000 = 10%) (2) Katz JN, et al. Surgery versus physical therapy for a meniscal tear and osteoarthritis. NEJM2013; DOI: 10.1056/NEJMoa1301408 3