Price AtlasInteractive atlas · All states · techysurgeon.comUniversity of Michigan Health: what a joint replacement costs
Ann Arbor, MI 48109 · CMS Certification Number 230046. What Medicare pays this hospital for knee, hip and shoulder replacement, what it lists, how it compares, and what a surgery center nearby is paid.
Medicare prices at University of Michigan Health
| Operation | Inpatient avg total payment Medicare + patient share | List price | List ÷ total | Outpatient Medicare allowed |
|---|---|---|---|---|
| Hip or knee replacement | $23,498 | $86,185 | 3.7× | $12,040 |
| Shoulder replacement | $27,367 | $109,117 | 4.0× | $17,202 |
| Hip replacement after a fracture (DRG 522) | $23,795 | $81,280 | 3.4× | — |
Commercial negotiated rates (beta)
| MS-DRG 470 | Median across insurers | × Medicare total payment | Lowest–highest insurer | Insurers |
|---|---|---|---|---|
| Hip or knee replacement | $33,600 | 1.4× | $32,376–$34,825 | 2 |
| Insurer | Median negotiated, MS-DRG 470 | × Medicare total payment | Plans |
|---|---|---|---|
| Employee Benefit Logistic | $34,825 | 1.5× | 1 |
| BCBS Michigan | $32,376 | 1.4× | 1 |
From the hospital's price-transparency file (2026-03-31); commercial plans, dollar-amount contracts only.
From the hospital's price-transparency file (2026-03-31); commercial plans, dollar-amount contracts only.
Quality
Complications after hip or knee replacement: 4.9% (no different from the national rate). Readmissions: 5.3%. Overall Care Compare rating: 4 of 5 stars. Nonprofit · Acute · 884 beds
Michigan requires a certificate of need for new surgery centers.
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Questions
How much does Medicare pay University of Michigan Health for a knee or hip replacement?
In 2024 the average total payment to University of Michigan Health for an inpatient hip or knee replacement stay was $23,498 (MS-DRG 470, 30 Medicare stays; Medicare's payment plus the patient's deductible and coinsurance), and the Medicare allowed amount averaged $12,040 per outpatient case (APC 5115, 253 cases).
What is University of Michigan Health's list price for a joint replacement?
The hospital's average list (chargemaster) price for an inpatient hip or knee replacement was $86,185, 3.7× the average total payment for a Medicare stay. Almost nobody pays the list price; it matters for uninsured bills and percent-of-charge contracts.
Is a knee replacement cheaper at a surgery center near University of Michigan Health?
Yes for Medicare facility payments. Bone & Joint Surgery Center of Novi, an orthopedic surgery center 15.9 mi away, is paid about $8,600 by Medicare for a knee replacement (CPT 27447), $14,898 less than an inpatient stay at University of Michigan Health. Not every patient is a surgery-center candidate.
How does University of Michigan Health compare with other Michigan hospitals?
University of Michigan Health's average total payment per Medicare stay is higher than 100% of the 37 Michigan hospitals that report inpatient hip or knee replacement.
What do commercial insurers pay University of Michigan Health for a hip or knee replacement?
From the hospital's own price-transparency file, commercial plans' negotiated rates for MS-DRG 470 have a median of $33,600 across 2 insurers, ranging from $32,376 to $34,825.