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.
| Operation | Inpatient paid | List price | List ÷ paid | Outpatient 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× | — |
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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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).
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.
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.
Medicare paid University of Michigan Health more than 100% of the 37 Michigan hospitals that report inpatient hip or knee replacement.