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Market strategy: Physician involvement helps build a profitable TJR program

Healthcare Strategist Trend Watch, August 19, 2005

The orthopedic market is expected to grow as much as 10% between 2003 and 2006. And an aging but active U.S. population means demand for total joint replacement (TJR) procedures will remain high.

Despite potentially profitable market conditions, many healthcare organizations lose money on their orthopedic lines. Reimbursement rates for TJR aren't keeping up with demand and competition from independent outpatient facilities adds to the squeeze.

Despite these difficulties, some organizations are thriving, according to a new study of 10 TJR programs.

The study, conducted by Michael B. Guthrie, MD, MBA, Girard F. Senn, RN, MS, CNAA, and Pamela M. Froneberger, RN, BSN, found that successful programs:

  • effectively manage the cost of each procedure
  • build strong relationships with their orthopedic physicians
  • and emphasize quality and positive patient outcomes

Source: The Physician Executive, May/June 2005, p. 42.

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