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University 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.

Surgery center nearby
$8,600
Bone & Joint Surgery Center of Novi, 15.9 mi
Outpatient here
$12,040
253 Medicare cases, APC 5115
Inpatient here
$23,498
30 Medicare stays, MS-DRG 470

Medicare prices at University of Michigan Health

OperationInpatient paidList priceList ÷ paidOutpatient allowed
Hip or knee replacement$23,498$86,1853.7×$12,040
Shoulder replacement$27,367$109,1174.0×$17,202
Hip replacement after a fracture (DRG 522)$23,795$81,2803.4×—

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 Medicare paid University of Michigan Health an average of $23,498 per inpatient hip or knee replacement stay (MS-DRG 470, 30 stays) and $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× what Medicare paid. 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?

Medicare paid University of Michigan Health more than 100% of the 37 Michigan hospitals that report inpatient hip or knee replacement.