Reducing arthroplasty costs via vendor contracts

OBJECTIVE: TO describe a method of reducing the costs of implants in hip an d knee arthroplasty. DESIGN: Implant costs were compared before and after the implementation of a 2-year contract with implant vendors, providing increased volume for decr eased implant cost. An additional 20% of arthroplasties could be done outsi de the contract for research or special purposes. SETTING: A regional health authority involving 2 acute cafe hospitals. METHOD: Costs were obtained for 942 hip and knee arthroplasties performed i n 1993/94 and compared with costs of 1656 hip and knee arthroplasties perfo rmed in 1996/97, OUTCOME MEASURES: Implant cost and number of joint arthroplasty procedures performed. RESULTS: A 40% decrease in the cost per implant for primary knee arthroplas ty and an 18% decrease in the cost per implant for primary hip arthroplasty were achieved; A rebate, calculated as a percentage of volume used, was re ceived from the vendor to support general orthopedic research and education . A new contract for 3 years has recently been signed with 3 vendors design ated as primary vendors for 80% of the volume. CONCLUSION: The vendor-contract economic strategy effectively reduced the c ost of hip and knee arthroplasty and may be useful at other centres looking for cost reduction methods that maintain adequate patient care and support clinical research and education.