Osteogenesis Stimulators - Lump-Sum Purchase Versus Rental

Osteogenesis stimulators, also known as bone-growth stimulators, apply an electric current or ultrasound to the spine or a long bone (e.g., the femur) and are used when a fusion or fracture failed to heal or after a multilevel spinal fusion. Medicare payments for these devices from 2012 to 2014 were approximately $286 million. Because osteogenesis stimulators are categorized as "inexpensive and other routinely purchased items," the beneficiary has the option of either purchasing or renting the stimulators. We will determine whether potential savings can be achieved by Medicare and its beneficiaries if osteogenesis stimulators are rented over a 13-month period (the period of consecutive months of rental at which the Medicare payment is capped) rather than acquired through a lump-sum purchase.

Announced or Revised	Agency	Title	Component	Report Number(s)	Expected Issue Date (FY)
Removed	Centers for Medicare & Medicaid Services	Osteogenesis Stimulators - Lump-Sum Purchase Versus Rental	Office of Audit Services	W-00-17-35747; various reviews	2019