- Department of Neurosurgery, Johns Hopkins School of Medicine, Baltimore, Orange, United States
- Department of Neurosurgery, University of California, Irvine, Orange, United States
- Department of Biological Sciences, Seton Hall University, South Orange Village, United States
- Department of Neurosurgery, Indiana University School of Medicine, Indianapolis, United States
- School of Medicine, Qeshm International Branch, Islamic Azad University, Qeshm, Iran
- Brain and Spinal Cord Injury Research Center, Neuroscience Institute, Tehran University of Medical Sciences, Tehran, Iran
- Department of Neurosurgery, Mayo Clinic, Rochester, United States
Correspondence Address:
Julian Lassiter Gendreau, Department of Neurosurgery, Johns Hopkins School of Medicine, Baltimore, United States.
DOI:10.25259/SNI_209_2025
Copyright: © 2025 Surgical Neurology International This is an open-access article distributed under the terms of the Creative Commons Attribution-Non Commercial-Share Alike 4.0 License, which allows others to remix, transform, and build upon the work non-commercially, as long as the author is credited and the new creations are licensed under the identical terms.How to cite this article: Melanie Alfonzo Horowitz1, Linda Tang1, Nolan J. Brown2, Saarang Patel3, Mohammad Faizan Khan4, Sachiv Chakravarti1, Mohammad Mirahmadi Eraghi5,6, Zach Pennington7, Julian Lassiter Gendreau1, Benjamin D. Elder7. Cerebrospinal fluid diversion procedure utilization and physician reimbursement in adult hydrocephalus patients. 02-May-2025;16:162
How to cite this URL: Melanie Alfonzo Horowitz1, Linda Tang1, Nolan J. Brown2, Saarang Patel3, Mohammad Faizan Khan4, Sachiv Chakravarti1, Mohammad Mirahmadi Eraghi5,6, Zach Pennington7, Julian Lassiter Gendreau1, Benjamin D. Elder7. Cerebrospinal fluid diversion procedure utilization and physician reimbursement in adult hydrocephalus patients. 02-May-2025;16:162. Available from: https://surgicalneurologyint.com/?post_type=surgicalint_articles&p=13534
Abstract
BackgroundAs the population continues to age, the number of adults receiving care for hydrocephalus is expected to increase. Here, we assess trends in the utilization and physician reimbursement for ventriculoperitoneal shunts (VPS), lumboperitoneal shunting (LPS), and endoscopic third ventriculostomy (ETV) for adult hydrocephalus.
MethodsThe Medicare Part B National Summary Data files from 2000 to 2021 were collected, and information was extracted on procedures performed per year, total charges billed, and actual payments. Linear mixed-model regression analyses were conducted to assess the significance of changes in procedural volume and physician reimbursement over time while adjusting for inflation.
ResultsOver the period studied, there was a 26% increase in VPS placement (P = 0.11), 11.34% increase in ETV utilization (P P P = 0.04). In both inflation-unadjusted and inflation-adjusted analyses, all procedures experienced an annual decline in reimbursement with inflation-adjusted changes of −11.54%/year for ETV, −4.13% for LPS, and −13.12% for VPS. There was a statistically significant difference in the change of rate of reimbursement between LPS procedures and both ETV (P P
ConclusionMedicare reimbursement data shows that a commensurate decline in physician reimbursement has accompanied the ongoing rise in adult hydrocephalus procedures.
Keywords: Cerebrospinal fluid diversion, Hydrocephalus, Medicare, Neurosurgery, Physician reimbursement
INTRODUCTION
Hydrocephalus affects approximately 179/100,000 individuals over the age of 60, with approximately half of cases reported to be idiopathic normal pressure hydrocephalus (iNPH).[
As the relative clinical efficacy of these different strategies continues to be assessed, there is growing interest on the part of payors to understand the rates at which these procedures are utilized. Heterogeneity within patient data accounts for the variance noted in terms of economic costs, length of stay (LOS), and patient outcomes for patients with hydrocephalus. Chief among these payors are the Centers for Medicare and Medicaid Services (CMS), the single largest payer for persons over 65.[
As CSF-diversion procedures are the gold standard of care for these patients, a thorough understanding of the size of this clinical population and the costs of caring for them is merited. Therefore, our objective of this study was to evaluate trends in utilization and physician reimbursement for VPS, LPS, and ETV procedures for Medicare patients undergoing treatment of adult hydrocephalus and help guide clinical decision making appropriately.
MATERIALS AND METHODS
Data source and extraction
The Medicare Part B National Summary Data files are publicly available from the years 2000 to 2021.[
Inflation adjustment
The United States Consumer Price Index (U.S. Bureau of Labor Statistics, Washington DC, USA) was used to adjust reported reimbursements into 2021 dollars for each fiscal year.[
Statistical analysis
Payment data and the average annual procedure volume over the 22 years were presented as mean ± standard deviation. In addition, the mean Medicare reimbursements to physicians per claim were calculated to derive a percent change in reimbursement difference between 2000 and 2021.
Changes in procedural volume and physician reimbursement over time were tested for significant trends using linear mixed-model regression analyses. The year was utilized as the predictive variable and natural logarithm transformation of physician reimbursement or annual procedural volume was used as the outcome variable. Linear mixed models were used to account for the potential effects of clustering and correlation within the data. One-way analysis of variance (ANOVA) was used to look for significant differences between procedure types with regard to the trends in procedure volume and inflation-adjusted reimbursement. Individual between-group differences were performed using Tukey’s post hoc test. Wilcox test was used to compare the volume of LPS and VPS before and after 2015. The year 2015 was chosen to analyze the effect of the SINPHONI clinical trial on the utilization rate of LPS and VPS.[
RESULTS
ETV
Procedural volume analysis
Total ETV volume increased significantly from 194 procedures in 2000 to 216 procedures in 2021 (P < 0.01), reaching a maximum of 281 procedures in 2016 [
Figure 1:
Comparison of the annual volume of procedures billed to Medicare Type B each year for endoscopic third ventriculostomy, lumboperitoneal, and ventriculoperitoneal (VP) shunt. For VP, the Y-axis value is the number of procedures performed/10. LP: Lumboperitoneal, ETV: Endoscopic third ventriculostomy.
Reimbursement analysis
Non-inflation adjusted procedural reimbursement showed a 21.98% increase from $717.23 in 2000 to $874.90 in 2021 (P < 0.01). Subanalysis by CPT code showed a non-significant increase of 5.56% ($798.28–$842.68) in the non-image guided group and a significant increase of 42.59% ($636.18–$907.13) in the image-guided group over the study period [
LPS
Procedural volume analysis
Total LPS procedural volume decreased from 576 procedures in 2000 to 328 procedures in 2021 (−43.1%; P < 0.01; [
Reimbursement analysis
Reimbursement [
VPS
Procedural volume analysis
The overall number of VPS procedures increased non-significantly across the study period, from 6689 procedures in 2000 to 8434 procedures in 2021 (P = 0.11; [
Reimbursement analysis
Absolute reimbursement showed an 8.11% decrease across the study period (P = 0.17, [
Comparison among procedures
Procedure volume
Average annual growth rates (AAGR) for ETV, LPS, and VPS were 4.29%, −8.78%, and 45.83%, respectively [
Medicare reimbursement
The AAGR for ETV, LPS, and VPS were −11.54%, −4.13%, and −13.12%, respectively [
Shunt comparison with 2015
There was a statistically significant decrease in LPS shunts placed without laminectomy (P = 0.05) and with a laminectomy (P < 0.01) when comparing the 2000–2015 and post-2015 study periods [
DISCUSSION
The costs of providing effective care for the aging U.S. population present an ongoing challenge for CMS, the primary insurer for Americans over 65 years of age.[
Surgical candidate selection and variability in procedure utilization
Among patients in the Medicare population, the most common causes of hydrocephalus are iNPH and communicating hydrocephalus following subarachnoid hemorrhage. In both cases, CSF diversion provides definitive therapy. As with post-hemorrhagic hydrocephalus, iNPH responsiveness to shunting is variable, which may, in part, drive regional variation in VPS placement.[
Similar variability in the usage of VPS was noted in a recent population-level analysis by Mansoor et al.[
Effects of decreased reimbursement
Medicare is the largest payer for inpatient procedures in the United States and serves as a benchmark for insurance providers nationwide.[
Changes in procedure volume
Our analysis noted an increase in the number of VPS placed across the study period, though the trend was not significant. By comparison, using the National Inpatient Sample, Alvi et al. found a significant increase in the number of open and laparoscopic VPS placed between 2007 and 2017. Of note though, these authors focused only on VPS for iNPH.[
Our results also showed an increase in ETV procedures across the examined time frame. Although less commonly employed in adult patients, an increasing body of literature has begun to suggest obstructive adult hydrocephalus may be treated with upfront ETV.[
Shunt procedure prevalence after SINPHONI-2
Based on a 2015 study by Kazui et al., LP shunts were suggested as a possible first-line treatment for iNHP.[
Limitations
This study has several limitations that should be acknowledged. First, the data used for analysis were obtained solely from Medicare Part B claims, which focus solely on physician fees and outpatient care. The largest portion of reimbursement stems from hospitalization cost/facility fees, which are covered under Part A. There may be contrasting trends in Part A reimbursement that help to explain the observed changes in procedural volume. In addition, Medicare is only one insurer for the aged population. Although it is often the trend-setter for private insurance, the correlation is unlikely to be perfect and so the present findings may not be directly generalizable to the broader private insurance market. An additional limitation is that the study is retrospective, which precludes us from identifying any causal linkage between procedure volume and reimbursement. Furthermore, as the present study employed a large administrative database, it is subject to potential coding errors or inaccuracies. In addition, the analysis focused solely on Medicare Part B claims and did not include reimbursement data from Medicare Part C (Medicare Advantage), despite its growing significance in medical reimbursement. Unfortunately, data on Medicare Part C were not obtainable from alternative sources. Furthermore, specific medical diagnoses for individual patients were not available for inclusion in this cost-analysis study, so it is not clear if the relative breakdown of VPS, LPS, and ETV utilization is changing for any specific diagnostic group within the adult hydrocephalus population. Despite these limitations, the present study represents the first to assess and compare relative utilization and Medicare reimbursement data for the placement of VP shunts, LP shunts, and ETVs.
CONCLUSION
The present data demonstrate that there has been a significant decline in inflation-adjusted physician Medicare reimbursement for CSF diversion procedures for patients with adult hydrocephalus, reflective of global declines in reimbursement for neurosurgical procedures. Across the period examined, there was a decline in LPS utilization and commensurate increases in VPS and ETV procedures, though these did not correlate with changes in reimbursement. We believe publication of these results will help promote future policy changes with respect to CSF diversion procedure reimbursement.
Ethical approval
The Institutional Review Board approval is not required as it is a retrospective study.
Declaration of patient consent
Patient’s consent not required as there are no patients in this study.
Financial support and sponsorship
Nil.
Conflicts of interest
There are no conflicts of interest.
Use of artificial intelligence (AI)-assisted technology for manuscript preparation
The authors confirm that there was no use of artificial intelligence (AI)-assisted technology for assisting in the writing or editing of the manuscript and no images were manipulated using AI.
Disclaimer
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the Journal or its management. The information contained in this article should not be considered to be medical advice; patients should consult their own physicians for advice as to their specific medical needs.
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