Strategy Lowers CalPERS’ Price of Joint Surgeries

California’s CalPERS ran pilot program to tackle large variability in prices for orthopedic surgeries

CEO SUMMARY: Probably the most-watched reference pricing program in healthcare to date was initiated by CalPERS. It focused on the variability in the prices of knee and hip replacement surgeries. Just as Safeway experienced a drop in clinical lab test prices of 32% in its reference pricing program, CalPERs paid 30% less for these surgeries …

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