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McLaren Northern Michigan: what a joint replacement costs

Petoskey, MI 49770 · CMS Certification Number 230105. 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
$8,278
Northern Michigan Surgical Suites, LLC, 10.0 mi
Outpatient here
$12,229
Medicare allowed amount, 95 cases, APC 5115
Inpatient here
$15,586
Avg total payment (incl. patient share), 12 Medicare stays, MS-DRG 470

Medicare prices at McLaren Northern Michigan

OperationInpatient avg total payment
Medicare + patient share
List priceList ÷ totalOutpatient Medicare allowed
Hip or knee replacement$15,586$39,0172.5×$12,229
Shoulder replacement———$17,461
Hip replacement after a fracture (DRG 522)$17,459$42,4912.4×—

Commercial negotiated rates (beta)

MS-DRG 470Median across insurers× Medicare total paymentLowest–highest insurerInsurers
Hip or knee replacement$25,8231.7×$19,125–$32,5212
InsurerMedian negotiated, MS-DRG 470× Medicare total paymentPlans
BCBS Michigan$32,5212.1×1
MI Amish Medical Board$19,1251.2×1

From the hospital's price-transparency file (2025-12-31); commercial plans, dollar-amount contracts only.

From the hospital's price-transparency file (2025-12-31); commercial plans, dollar-amount contracts only.

Quality

Complications after hip or knee replacement: 4.3% (no different from the national rate). Readmissions: 5.3%. Overall Care Compare rating: 3 of 5 stars. Nonprofit · Acute · 243 beds

Michigan requires a certificate of need for new surgery centers.

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Questions

How much does Medicare pay McLaren Northern Michigan for a knee or hip replacement?

In 2024 the average total payment to McLaren Northern Michigan for an inpatient hip or knee replacement stay was $15,586 (MS-DRG 470, 12 Medicare stays; Medicare's payment plus the patient's deductible and coinsurance), and the Medicare allowed amount averaged $12,229 per outpatient case (APC 5115, 95 cases).

What is McLaren Northern Michigan's list price for a joint replacement?

The hospital's average list (chargemaster) price for an inpatient hip or knee replacement was $39,017, 2.5× 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 McLaren Northern Michigan?

Yes for Medicare facility payments. Northern Michigan Surgical Suites, LLC, an orthopedic surgery center 10.0 mi away, is paid about $8,278 by Medicare for a knee replacement (CPT 27447), $7,308 less than an inpatient stay at McLaren Northern Michigan. Not every patient is a surgery-center candidate.

How does McLaren Northern Michigan compare with other Michigan hospitals?

McLaren Northern Michigan's average total payment per Medicare stay is lower than 70% of the 37 Michigan hospitals that report inpatient hip or knee replacement.

What do commercial insurers pay McLaren Northern Michigan 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 $25,823 across 2 insurers, ranging from $19,125 to $32,521.