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.
| Operation | Inpatient avg total payment Medicare + patient share | List price | List ÷ total | Outpatient Medicare allowed |
|---|---|---|---|---|
| Hip or knee replacement | $15,586 | $39,017 | 2.5× | $12,229 |
| Shoulder replacement | — | — | — | $17,461 |
| Hip replacement after a fracture (DRG 522) | $17,459 | $42,491 | 2.4× | — |
| MS-DRG 470 | Median across insurers | × Medicare total payment | Lowest–highest insurer | Insurers |
|---|---|---|---|---|
| Hip or knee replacement | $25,823 | 1.7× | $19,125–$32,521 | 2 |
| Insurer | Median negotiated, MS-DRG 470 | × Medicare total payment | Plans |
|---|---|---|---|
| BCBS Michigan | $32,521 | 2.1× | 1 |
| MI Amish Medical Board | $19,125 | 1.2× | 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.
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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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).
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.
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.
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.
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.