GLP-1 drugs reshape surgery demand, threaten hospital revenue

Editor's Note

The widespread adoption of GLP-1 weight-loss medications like Ozempic and Wegovy could put revenue at risk across multiple service lines, according to a March 11 article in Becker’s Hospital Review. As a result, hospitals and ambulatory surgery centers (ASCs) face critical questions about how to adapt.

The article details how newer GLP-1 drugs are transforming patient care, reducing elective surgery volumes, and otherwise forcing hospitals to rethink financial strategies. By 2029, as much as 60% of profits across eight high-margin therapeutic areas could be at risk, according to consulting firm Kearney.

As detailed in the article, impacted service lines include:

• Cardiology. Declines in coronary artery bypass grafting, peripheral revascularization, and carotid artery stenting are expected to contribute to a projected $7.5 billion loss over the next four years. And with GLP-1s approved to reduce major adverse cardiovascular events, hospitals may see declining demand for bypass surgeries and coronary interventions.
• Bariatric surgery. These services are experiencing a sharp downturn as GLP-1 prescriptions surge. After a modest increase in bariatric procedures from 2021 to 2022, the trend reversed in late 2022, coinciding with rising GLP-1 use. Some hospitals have closed bariatric programs due to dwindling demand, and projections indicate inpatient bariatric surgery rates could drop further.
• Transplants. In contrast, some transplant programs are seeing increased volumes as GLP-1s help patients with high body mass indexes qualify for organ transplants. However, the overall need for these procedures may decline as obesity-related joint issues become less prevalent.  
• Orthopedic surgery. Many orthopedic surgeons have strict BMI cutoffs for procedures, and GLP-1s may enable more patients to qualify for knee replacements, hip replacements, and spinal fusions. However, the overall need for these procedures may decline as obesity-related joint issues become less prevalent.

The full article offers additional context as well as specific predictions from Kearney on projected drops in surgical procedures.