The 2019 novel coronavirus (COVID-19) global health crisis has caused a sharp decline in orthopedic/spine surgery. Canaccord Genuity Analyst Kyle Rose surveyed 50 orthopedic/spine surgeons to assess COVID-19’s impact on treatment and practice viability.
Rose expected most of those surveyed to report that orthopedic procedures had been delayed. The survey results supported this hypothesis. A majority of respondents reported that their practices had already decided to defer or postpone all procedures. Nearly a third of respondents indicated that “over 90% of their entire practice was deferrable.”
A dramatic decline in surgeries can be expected since providers have been called upon to stop all elective surgeries. In March both the American College of Surgeons and the Centers for Medicaid and Medicare Services (CMS) asked healthcare providers to cancel elective surgeries. OTW’s previous coverage of these notices see “CMS: ‘Postpone Elective Ortho Surgeries’” and “Orthopedic Procedure Volume Forecast in the Age of COVID-19.”
Procedure postponements have had a dramatic effect on patient volume. Respondents indicated a “58% average decline in March and an anticipated 77% average decline in April.”
Interestingly, those surveyed are also predicting a dramatic rise in future procedure volume with “41% expecting to ‘catch-up’ on procedure volumes within three months and another 35% within six months.” So, while quarter one and quarter two may be depressed months, quarter three and quarter four may see unprecedented numbers.
Orthopedic procedures such as hip/knee total joint replacement and spine surgery account for a major portion of revenue. Canceling or postponing procedures has caused significant revenue loss for providers. Unfortunately, this revenue loss has caused many practices to “temporarily furlough or lay off staff.” While still in the midst of the COVID-19 pandemic, it is impossible to capture the total impact that COVID-19 will have on practices and their financial feasibility.
The survey did have a notable prediction regarding the adverse effect that orthopedic/spine financial losses may have on other industries. Rose stated, “We would not be surprised to see a significant decline in capital purchases like robotics/navigation—a major area of recent focus from the ortho/spine industry and a big risk for the larger robotic players.”
