Robot-assisted surgeries have become increasingly popular over the past decade. Many hospitals in the United States have acquired robotic surgical systems and more are considering purchasing this equipment. The price of such machines can be up to $2.5 million. Given such high acquisition costs, it is important to study how the diffusion of this new technology affects the U.S. healthcare system. Using a unique database we compiled for hospitals in California, we will employ state-of-the-art econometric methods to address the following specific aims: 1: To examine hospital and market characteristics associated with hospitals' decision to acquire a robotic surgical system. 2: To explore how the acquisition of robotic surgical system affect the flow and cost of surgeries among hospitals within the same market as well as across markets with varying capacity of robotic surgeries. 3: To evaluate how the purchase of robotic surgical machines affects the financial performance in terms of operating expenses and revenue of hospitals. Findings from this study will inform policy makers how the proliferation of robotic systems affects surgical practice and costs in hospital settings and can also help decision makers at hospitals make more rational decision regarding whether to purchase robotic surgical systems.

Public Health Relevance

An increasing number of Americans are undergoing robot-assisted surgery, a relatively new technology. Given the rapid technology diffusion and the high cost of the robotic surgical systems, the objective of our proposed research is to gain better understanding of how the proliferation of robotic surgical systems affect the U.S. healthcare system by examining hospitals' adoption decision and the impact of the diffusion of this new technology on hospitals' market share and inpatient costs of surgeries as well as financial performance. Using a unique database we compiled, we will employ state-of-the-art econometric methods to address these questions.

Agency
National Institute of Health (NIH)
Institute
Agency for Healthcare Research and Quality (AHRQ)
Type
Small Research Grants (R03)
Project #
5R03HS024608-02
Application #
9232093
Study Section
Healthcare Systems and Values Research (HSVR)
Program Officer
Sandmeyer, Brent
Project Start
2016-03-01
Project End
2018-02-28
Budget Start
2017-03-01
Budget End
2018-02-28
Support Year
2
Fiscal Year
2017
Total Cost
Indirect Cost
Name
University of Texas MD Anderson Cancer Center
Department
Miscellaneous
Type
Overall Medical
DUNS #
800772139
City
Houston
State
TX
Country
United States
Zip Code
77030
Shih, Ya-Chen Tina; Shen, Chan; Hu, Jim C (2017) Do Robotic Surgical Systems Improve Profit Margins? A Cross-Sectional Analysis of California Hospitals. Value Health 20:1221-1225