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Journal of Pediatric Surgery xxx (2016) xxx–xxx

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Journal of Pediatric Surgery


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Cost of ambulatory care for the pediatric intestinal failure patient:


One-year follow-up after primary discharge☆
Christina Kosar a, Karen Steinberg a, Nicole de Silva a, Yaron Avitzur a,b, Paul W. Wales a,c,⁎
a
Group for Improvement of Intestinal Function and Treatment (GIFT), The Hospital for Sick Children, University of Toronto, Canada
b
Division of Gastroenterology, Hepatology and Nutrition, The Hospital for Sick Children, University of Toronto, Canada
c
Division of General and Thoracic Surgery, The Hospital for Sick Children, University of Toronto, Canada

a r t i c l e i n f o a b s t r a c t

Article history: Background: Survival of children with intestinal failure has improved over the last decade, resulting in increased
Received 26 January 2016 health care expenditures. Our objective was to determine outpatient costs for the first year after primary discharge.
Accepted 7 February 2016 Methods: A retrospective analysis was performed in pediatric intestinal failure (PIF) patients between 2010 and
Available online xxxx 2012. Patients were stratified into 3 groups (1 = enteral support with no devices [7 patients], 2 = enteral support
with devices (gastrostomy and/or ostomy) [19 patients], 3 = home parenteral nutrition (HPN) [22 patients]). Data
Key words:
abstraction included clinical characteristics and costs related to medication, enteral/parenteral nutrition, and
Pediatric
Intestinal failure
supplies were calculated. Data were analyzed using one way ANOVA.
Costs Results: Forty-eight patients (mean age 7.6 months; 31 males [65%]) were studied. See attached table for results.
Ambulatory HPN patients had significantly more ambulatory visits (p b 0.0001), number of admitted days (p = 0.01),
and productive days lost (p b 0.0001). Total cost of care was significantly higher for HPN patients (mean =
$320,368.50, p b 0.0001) when compared to other groups. Costs covered by the health care system were signif-
icantly higher for patients on HPN (mean = $316,101.56, p b 0.0001).
Conclusion: The outpatient expenditures to care for PIF patients in the first year post primary discharge are
significant. Our single payer health care system supports the majority of costs, but families are also incurring
expenses related to travel and lost productivity. Children on HPN have more visits to hospital, but have access
to more funding options. Children solely on gastrostomy or stoma therapy, however, have a significantly greater
personal financial burden.
© 2016 Elsevier Inc. All rights reserved.

Long-term parenteral nutrition support is a common therapeutic rates continue to improve with the introduction of intestinal rehabilita-
strategy for the management of children with intestinal failure (IF) in tion programs (IRP) and novel medical therapies [8–13]. Children with
both the inpatient and home setting. IF is defined as the inability of IF remain at risk for a variety of morbidities including liver dysfunction,
the intestine to digest and absorb adequate nutrients and fluid to electrolyte derangement, metabolic bone disease, central line and infec-
support survival and growth [1–3]. Pediatric intestinal failure (PIF) is tious complications [8–9,14–16].
caused from short bowel syndrome (SBS), intestinal motility disorders With improved survival rates more patients are requiring intensive
and mucosal enteropathies [1]. The most common cause of PIF is SBS management within the home setting for parenteral nutrition (PN),
with an estimated incidence of 22.1 per 1000 neonatal intensive care and management of enteral therapy and medications/supplements.
admissions and 24.5 per 100,000 live births [4]. Mortality rates vary Many studies have evaluated the cost of care, but have mainly looked
greatly depending on age, underlying diagnosis and length of small at the adult population or the isolated cost of PN including both inpa-
bowel remaining, but are traditionally estimated at 30% [5–7]. Survival tient and outpatient costs [17–26]. Few studies have discussed patient
or family's out of pocket expenses. Intestinal failure patients require a
number of interventions that are independent of home parenteral nutri-
Abbreviations: IF, intestinal failure; PIF, pediatric intestinal failure; SBS, short bowel
tion (HPN) including enteral device therapy (gastrostomy and stoma
syndrome; IRP, intestinal rehabilitation programs; PN, parenteral nutrition; HPN, home
parenteral nutrition; GIFT, Group for Improvement of Intestinal Function and Treatment; care), specialized nutrition products, intravenous fluid and electrolyte
CAD, Canadian dollars; ODB, Ontario Drug Benefit; REB, research ethics board; km, kilome- replacements, medications and vitamin and mineral supplements.
ters; SB, small bowel; LB, large bowel. Costs also vary significantly between countries depending on the partic-
☆ Level of Evidence: 3.
ular model of health care delivery. To date there is no information avail-
⁎ Corresponding author at: The Hospital for Sick Children, Rm 1526, 555 University
Avenue, Toronto, Ontario M5G 1X8, Canada. Tel.: +1 416 813 7654x201490; fax: + 1
able on the outpatient costs of care for various types of IF intervention.
416 813 7477. The objective of our study was to determine the ambulatory cost of
E-mail address: paul.wales@sickkids.ca (P.W. Wales). care in the first year after primary discharge in pediatric IF patients

http://dx.doi.org/10.1016/j.jpedsurg.2016.02.026
0022-3468/© 2016 Elsevier Inc. All rights reserved.

Please cite this article as: Kosar C, et al, Cost of ambulatory care for the pediatric intestinal failure patient: One-year follow-up after primary
discharge, J Pediatr Surg (2016), http://dx.doi.org/10.1016/j.jpedsurg.2016.02.026
2 C. Kosar et al. / Journal of Pediatric Surgery xxx (2016) xxx–xxx

stratified by degree of medical intervention. We were interested in de- Ambulatory visit expenses represented out of pocket expenses
termining total cost of care to the health care system, as well as, the incurred by families related to return visits to hospital. After accounting
cost incurred by individual families. for the distance the patient traveled for appointments, transportation
costs were determined, including mileage [27] and parking rate of $12
1. Methods per visit. Overnight accommodation at our affiliated hotel with parent
rate for patients traveling greater than 200 km was included at a rate
The Hospital for Sick Children is a tertiary care facility in Toronto, of $100 per night. For parental meals while readmitted to hospital we
Canada. The Group for Improvement of Intestinal Function and Treat- included one food voucher valued at $8 Canadian dollars (CAD) daily.
ment (GIFT) was Canada's first multidisciplinary team established for We estimated productive days lost for one parent. Many parents
the management of children with IF. GIFT was established in 2002 and may be initially on maternity/paternity leave when the patient is first
has representation from general surgery, gastroenterology, transplanta- discharged home, but often have to return to work during that first
tion, nursing, nutrition, occupational and physiotherapy, social work, year. Often both parents are present at clinic appointments or take shifts
neonatology, and psychology. Early intervention has been the corner- during readmissions. While this likely impacts ability to work and
stone of the rehabilitation program and our mandate has been to personal income, we did not include a monetary value to our findings
improve the clinical care of patients with IF and to create new knowl- owing to the lack of precision in making these estimates.
edge through clinical and basic science research. The team is responsible Medication expenses included both prescription and “over the coun-
for the assessment and management of pediatric IF patients in the inpa- ter” therapies that patients were receiving. The cost/dollar value of the
tient and outpatient setting, providing patients with consistency of care. medications, supplements and enteral nutrition products were obtained
from the Ontario Drug Benefit (ODB) fee schedule and outpatient phar-
macy price list, along with standard dispensing fees.
1.1. Study design and study population Device expenses related to enteral therapy (feeding enterostomy
supplies, enteral feeding pump and ostomy appliances) were deter-
A retrospective cohort study of pediatric IF patients was completed mined. Expenses were based on outpatient provider information and
to evaluate patients managed by our multidisciplinary intestinal reha- catalogues provided to families.
bilitation team. Patients included in the study were discharged from Nutritional expenses were calculated for both enteral and parenteral
hospital after their primary admission between January 1, 2010 and De- nutrition. Enteral nutrition costs included type of formula, daily volume
cember 31, 2012 with one full year of follow-up. Patients were stratified and method of administration. Parenteral nutrition expenses included
into three groups: No medical device (reached full oral enteral autonomy parenteral solutions, vitamin injections, hydration solutions, adminis-
prior to discharge, but may have required various medications, supple- tration supplies, pump rental and miscellaneous costs associated with
ments or formulas), Enteral device (reached full enteral autonomy prior PN administration. Parenteral nutrition costs were obtained from an
to discharge, but was discharged with a feeding enterostomy tube outpatient pharmacy based on their average charges under the Ontario
[gastrostomy or gastrojejunostomy] and/or the presence of an ostomy), Drug Benefit program and supply charges covered by Community Care
Home Parenteral Nutrition (patients discharged on parenteral nutrition, Access Centre. Solid or table food lists were not collected owing to
but may have also possessed a medical device such as a feeding enteros- extreme variability and is an expected family maintenance cost.
tomy or ostomy). Patients were followed for one year following their
primary discharge from hospital. Patients were excluded if they did 1.3. Data analysis
not have one full year of follow-up, were not Ontario residents or
underwent organ transplantation. Analysis was based on patient level data and expenses were adjusted
to 2014 Canadian dollars (CAD). The calculated costs included the over-
1.2. Determination of cost of care all total cost of all outpatient expenses, cost to the government and out
of pocket cost to the family. Canada has a single payer health care
Data were collected using the electronic patient chart, as well as system with universal access and health care is provincially funded.
health records. Demographic data collected included gestational age The costs to the family were calculated based on what was not covered
(weeks), gender, etiology of IF, category of IF (SBS, dysmotility, mucosal under provincially funded drug benefit programs and subsidy programs
enteropathy), duration of primary admission and distance from hospital if they qualified and general “out of pocket” expenses. Some families
to home (in kilometers [km]). Additional data collected included may have additional extended coverage depending on private insur-
readmissions to hospital within one year post discharge (including ance, but this was not included in our analysis.
number of admissions and number of admitted days). Ambulatory Baseline and patient outcome data were compared using appropri-
data collected included costs associated with clinic visits, bloodwork ate summary statistics and continuous variables were presented using
appointments and diagnostic imaging. means and standard deviations and groups were compared using one-

Table 1
Patient demographics.

No medical device (n = 7) Enteral device (n = 19) HPN (n = 22) P-value⁎

Age at discharge (mo) 4.4 (2.1) 6.7 (2.5) 9.3 (11.6) 0.329
Gender, male (%) 5 (71.4) 13 (68.4) 13 (59.1) 0.757
Birth weight (g) 2786.4 (878.6) 1607.7 (738.9) 2154.8 (932.5) 0.008
GA (wk) 34.9 (3.7) 31.3 (4.2) 34.1 (3.8) 0.042
IF category (%) 0.284
Short bowel syndrome 6 (86) 17 (89) 20 (91)
Dysmotility 1 (14) 2 (11) 0
Mucosal enteropathy 0 0 2 (9)
Percent SB remaining 67.9 (22.4) 74.2 (22.3) 35.5 (29.8) b0.001
Percent LB remaining 79.3 (36.1) 87.6 (30.3) 70 (32.9) 0.23

Values are expressed as means with standard deviation.


% represents frequencies with percentages.
⁎ Hypothesis testing performed using one-way ANOVA or chi square where appropriate.

Please cite this article as: Kosar C, et al, Cost of ambulatory care for the pediatric intestinal failure patient: One-year follow-up after primary
discharge, J Pediatr Surg (2016), http://dx.doi.org/10.1016/j.jpedsurg.2016.02.026
C. Kosar et al. / Journal of Pediatric Surgery xxx (2016) xxx–xxx 3

Table 2
Hospital readmissions and ambulatory visits in first year post primary admission.

No medical device (n = 7) Enteral device (n = 19) HPN (n = 22) P-value⁎

Length of primary hospitalization (d) 98 (36.5) 157 (63.7) 140 (78.0) 0.162
Distance from home to hospital (km) 62.6 (65.9) 121.0 (174.2) 109.3 (151.1) 0.688
No. of ambulatory visits 6.7 (1.3) 11.9 (6.4) 20.4 (8.7) b0.001
No. of readmissions 0.29 (0.5) 1.2 (1.4) 3.2 (2.4) 0.001
No. of readmitted days 4.7 (8.3) 10.1 (17.0) 27.7 (26.1) 0.010
Caregiver productive days lost 11.4 (9.1) 22.4 (21.4) 49.6 (30.2) b0.001

Values are expressed as means with standard deviation.


⁎ Hypothesis testing performed using one-way ANOVA.

way ANOVA with a p-value of b0.05 being significant. IBM SPSS Statis- The costs associated with ambulatory visits to hospital (transporta-
tics 22 (2013) was used for statistical analysis. tion costs, meals, parking, accommodation) were significantly higher
The study was approved by The Hospital for Sick Children research for patients on HPN given their increased frequency of hospital visits
ethics board (REB# 1000042603). for clinics, laboratory tests and diagnostic imaging ($1184.98 vs
$594.32 and $313.14; p b 0.01). Ambulatory travel expenses are
shown in Fig. 1.
2. Results

2.1. Patient demographics


2.3. Medical device, medication and enteral nutrition expenses
During the study period, forty-eight patients met inclusion criteria
Global device cost for both enterostomy feeding and ostomy was
with a mean age of 7.6 months and 31 patients were male (65%). Of
similar between the enteral device and HPN groups, but significantly
the participants 7 patients required no medical device (15%), 19 patients
higher when compared to patients with no medical devices as expected
required an enteral device (40%) and 22 patients were on HPN (46%). The
(shown in Fig. 2). Global expenses for enterostomy feeding were
majority of patients had SBS as the cause of their intestinal failure and
between CAD $2100 and $2500 per annum and CAD $3516 per
this was not significantly different between the 3 groups. Age at primary
annum for ostomy care. Family expenses for both devices were also sim-
discharge (months) and gender were also similar between the 3 groups.
ilar for the enteral device group and HPN group as families have access
Patients in the enteral device group had lower birth weight (p b 0.01)
to the same subsidy programs for these devices. Government subsidy
and gestational age (p = 0.042), respectively. The HPN group possessed
programs cover approximately 50% of recommended number/quota of
a shorter percentage of residual small bowel (p b 0.01). Patient charac-
enterostomy feeding supplies and 20% of recommended number of
teristics are displayed in Table 1.
ostomy appliances leaving families responsible for CAD $1130/year for
enterostomy feeding and CAD $2916/year for ostomy care, respectively.
2.2. Hospital visits and ambulatory visit expenses The HPN group had significantly more global expenses for medica-
tions (including prescription and over the counter supplements)
Results for hospital visits and admission information are included in accounting for CAD $4673.79 per annum compared to CAD $872.61
Table 2. Primary length of stay and distance from home to hospital were for the enteral device group and CAD $397.53 for the no medical device
not significantly different between groups. As expected children on HPN group (p b 0.01). However after accounting for drug benefit program
had significantly more ambulatory visits to hospital with approximately subsidies the HPN group was comparable to the other groups with out
20 visits in the first year after discharge compared to 12 for the enteral of pocket expenses of CAD $478.79 (compared to CAD $799.50 for
device group and 7 for the no medical device group (p b 0.01). HPN pa- enteral device patients and CAD $397.53 for no medical device group),
tients also had a mean of 3 admissions in the first year for approximately which was not statistically significant. Results are displayed in Fig. 3.
28 admitted days compared to 1 admission for the enteral therapy The expenses for enteral nutrition per annum (Fig. 4) were compa-
group and b 1 for the no medical device group (p b 0.01). We also rable between all groups for global cost (ranging from CAD $2575.59
found that families with children on HPN have significantly more pro- to CAD $4802.66 per year). The HPN group; however, had significantly
ductive days lost when compared to the other groups (49.6 vs 11.4 reduced out of pocket expenses from CAD $2895.98 to CAD $187.65
and 22.4 days; p b 0.01). after accounting for drug benefit program subsidies (p b 0.01).

Fig. 1. Ambulatory visit expenses. The costs associated with ambulatory visits to hospital are essentially out-of-pocket expenses for families (transportation costs, meals, parking, accom-
modation). Ambulatory costs were significantly higher for patients on HPN given their increased frequency of hospital visits for clinics, laboratory tests and diagnostic imaging ($1184.98
vs $594.32 and $313.14; p b 0.01).

Please cite this article as: Kosar C, et al, Cost of ambulatory care for the pediatric intestinal failure patient: One-year follow-up after primary
discharge, J Pediatr Surg (2016), http://dx.doi.org/10.1016/j.jpedsurg.2016.02.026
4 C. Kosar et al. / Journal of Pediatric Surgery xxx (2016) xxx–xxx

Fig. 2. Medical device expenses. Global and family expenses for devices (enterostomy feeding and stomas) were similar for the enteral device group and HPN group as families have access
to the same subsidy programs for these devices. Government subsidy programs cover approximately 50% of recommended use of gastrostomy supplies and 20% of recommended supply
use for ostomy appliances.

2.4. Calculation of total costs complex patient population. In our program we have seen our ambula-
tory visit volumes increase 100% in the past 5 years.
Overall costs of care were calculated after obtaining all costs from Presently, the literature regarding cost of care in intestinal failure
other categories (Fig. 5). The cost of home parenteral nutrition per is limited, highly variable and difficult to interpret. The majority of
year is approximately CAD $300,000, but families do not incur any of publications focus on adult patients [17–21] who are very different
this expense as it is covered under government drug benefit programs from infants and children. Some studies report the cost comparing
and home care services. The total cost of care per annum is significantly home versus hospital parenteral nutrition [17,18] or specifically discuss
higher for patients on HPN (CAD $320,369 vs $8969 and $3742; Medicare charges in the United States [22,23]. The cost effectiveness of
p b 0.01) with the majority of the difference related to parenteral nutri- HPN versus inhospital therapy has also been demonstrated by several
tion. This also translates to a significant cost to the health care system at authors [14,17,18,24]. Piamjariyakul et al. evaluated the out of pocket
a mean of CAD $316,102 per year as the expense of HPN is covered expenses for patients on HPN, but the study was not exclusively pediat-
under subsidy and drug programs. The cost to the system is negligible ric and did not account for other intestinal failure patients receiving
for the other groups at CAD $1855 for the enteral device group and enteral therapy in the absence of HPN [20]. In addition, the significant
$0CAD for the no medical device group (p b 0.01). variation in health care delivery between countries can make compari-
When we evaluated the total costs to the family, the enteral device sons difficult.
group had a larger out of pocket expense at CAD $7115 per year com- Two Canadian studies examined the economic impact of HPN in the
pared to CAD $4267 for the HPN group and CAD $3438 for the no medical adult population and showed a significant reduction between inhospital
device group (p b 0.01). and home. Marshall et al. [17] found a savings of $5000 per month for
patients on HPN based on 2002 CAD, but no other Canadian data have
3. Discussion been published to show the pediatric population or impact on the
family for out of pocket expenses. In the pediatric study by Spencer
The benefits of multidisciplinary intestinal rehabilitation teams in et al. [25] they evaluated both in hospital, home care and outpatient
the management of children with IF has been published by individual costs of pediatric short-bowel syndrome. They demonstrated an
centers [28–31] and has also been the subject of a recent systematic increasing cost for home care services over the first five years after
review that demonstrated reduced septic complications and an increase diagnoses. Their cost estimate in the fifth year after discharge was
in overall patient survival of 22% after institution of an intestinal rehabil- $184,520 ± $111,075 based on 2005 USD. They attributed the increas-
itation program [11]. With improved survival has come a significant ing costs over time to increasing complications related to long-term
increase in our ambulatory patient activity along with an increasingly parenteral nutrition. They did not include IF patients not receiving

Fig. 3. Medication expenses. The HPN group had significantly more global medical expenses at just over CAD $4500 per annum, but after subsidies and drug benefit programs their out of
pocket expense was just under $500 and was not statistically different from the other groups.

Please cite this article as: Kosar C, et al, Cost of ambulatory care for the pediatric intestinal failure patient: One-year follow-up after primary
discharge, J Pediatr Surg (2016), http://dx.doi.org/10.1016/j.jpedsurg.2016.02.026
C. Kosar et al. / Journal of Pediatric Surgery xxx (2016) xxx–xxx 5

Fig. 4. Enteral nutrition expenses. There was not a significant difference in global costs between the 3 groups for enteral nutrition expenses, but the family cost was significantly higher for
children with no medical device or enteral device compared to the HPN group as the HPN patients received more nutritional subsidies.

parenteral therapy. Olieman et al. [26] followed 10 patients prospective- there is no cost effectiveness data comparing home PN to intestinal
ly and found that costs of care comprised mainly of inhospital care and transplantation in children that includes quality of life and health utility
early HPN can contribute to decreased costs to the system. Neither scores in the analysis.
paper evaluated direct costs to the family. In calculating costs to the family for the different categories of care,
Our study attempted to quantify the cost of PIF based on different we made the assumption that all expenses not covered by our single
patient categories. The mean total cost of care for patients receiving payer health care system would be assigned as a family cost. It is true
home PN is CAD $320,369 for the first year post discharge. The total some families may have access to additional private insurance. Also,
mean cost is approximately CAD $9000 and CAD $3700 for patients many government benefits available to families are based on employ-
discharged home with an enteral device and for patients discharged ment benefits and socioeconomic status. Hence, it is possible the actual
without an enteral device, respectively. The vast majority of expense expenses for families will be mitigated by other funding sources they
is related to the cost of home PN which is approximately $300,000. may have access to. The cost estimates represent the cost of items/
Because of the nature of health care delivery in Canada, families do supplies irrespective of funding or insurance.
not incur any of those expenses as home PN is covered under the The challenge we faced in calculating expenses related to enteral
government drug programs. Relatively speaking, for patients not on devices was related to recommended estimates/quotas versus actual
home PN, families incur the majority of the costs ranging between use of supplies, specifically related to stoma appliances. For example,
CAD $3400 and CAD $7115 (Fig. 5), as these patients are not eligible expenses were based on the expected number of stoma appliance
for the same government subsidies. This study has illustrated the changes per month based on supplier recommendations. Currently
tremendous cost of care for pediatric patients who suffer from intestinal families receive an annual subsidy of $600 accounting for 20% of recom-
failure and require home PN. The study also highlights the burden of mended supplier quotas thus the family have to pay for the other 80% of
care to families and caregivers as shown by the frequency of ambulatory costs. Anecdotal reports from our families indicate they use significantly
visits, readmission rates and productive days lost by caregivers. more supplies than allotted for owing to a variety of reasons: abdominal
Certain limitations of our study require acknowledgment. The retro- anatomy and size, surgical scars, location of stoma, consistency/acidity
spective design makes the data prone to observation bias and recall bias. of effluent and caregiver proficiency. The average income for a Canadian
This is off-set by the exceptionally close follow up our program main- family is $76,550 based on Canadian census data [34]. Based on our
tains with essentially no patients being lost to follow up. The study estimates families with an enteral device are spending approximately
only examined ambulatory cost for the first year post primary discharge. 10% of their annual income on out of pocket expenses (compared to
We assume the expenses are not linear and change over time as intesti- 5% for HPN families and 4% for no medical device patients). This doesn't
nal adaptation occurs and home PN is weaned. For patients who fail to include increased cost associated with diapers, stoma appliances and
wean from PN, the annual costs would continue to be significant. food for hyperphagic children.
Sudan [31] demonstrated that in patients who received bowel trans- Another important challenge for caregivers that could not be trans-
plantation and survived, there is a point (usually at 1–3 years) where lated to an expense is the time that they spend caring for children
bowel transplantation becomes more cost effective to home PN. Unfor- with IF on a daily basis. Caregivers devote a significant amount of time
tunately, 5 year survival after intestinal transplantation is still approxi- every day preparing formula, parenteral nutrition bags, administration
mately 60% compared to 85–90% for home PN [7–9,29,32,33]. To date, of feeds, gastrostomy and stoma care, ordering and procuring supplies,

Fig. 5. Total cost of care. The cost of home PN per year is approximately $300,000, but families do not incur any of those expenses as home PN is covered under the government drug pro-
grams. The cost to the system is significant for children on home PN and minimal for the other groups. The cost to the family is significantly higher for families with enteral devices (ap-
proximately CAD $7000 per year).

Please cite this article as: Kosar C, et al, Cost of ambulatory care for the pediatric intestinal failure patient: One-year follow-up after primary
discharge, J Pediatr Surg (2016), http://dx.doi.org/10.1016/j.jpedsurg.2016.02.026
6 C. Kosar et al. / Journal of Pediatric Surgery xxx (2016) xxx–xxx

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Please cite this article as: Kosar C, et al, Cost of ambulatory care for the pediatric intestinal failure patient: One-year follow-up after primary
discharge, J Pediatr Surg (2016), http://dx.doi.org/10.1016/j.jpedsurg.2016.02.026

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