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Erlanger Health System: what a joint replacement costs

Chattanooga, TN 37403 · CMS Certification Number 440104. 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
$8,376
Riverfront Surgery Center, 1.2 mi
Outpatient here
$11,031
Medicare allowed amount, 359 cases, APC 5115
Inpatient here
$16,702
Avg total payment (incl. patient share), 138 Medicare stays, MS-DRG 470

Medicare prices at Erlanger Health System

OperationInpatient avg total payment
Medicare + patient share
List priceList ÷ totalOutpatient Medicare allowed
Hip or knee replacement$16,702$43,3572.6×$11,031
Shoulder replacement$21,213$66,6773.1×$15,526
Hip replacement after a fracture (DRG 522)$18,807$63,8403.4×—

Commercial negotiated rates (beta)

MS-DRG 470Median across insurers× Medicare total paymentLowest–highest insurerInsurers
Hip or knee replacement$19,3571.2×$17,837–$20,9184
InsurerMedian negotiated, MS-DRG 470× Medicare total paymentPlans
UnitedHealthcare$20,9181.3×1
BCBS TN$20,8021.2×1
Humana$17,9121.1×1
Cigna$17,8371.1×1

From the hospital's price-transparency file (2026-01-25); commercial plans, dollar-amount contracts only.

From the hospital's price-transparency file (2026-01-25); commercial plans, dollar-amount contracts only.

Quality

Complications after hip or knee replacement: 2.9% (no different from the national rate). Readmissions: 4%. Overall Care Compare rating: 4 of 5 stars. Government · Acute · 848 beds

Tennessee requires a certificate of need for new surgery centers.

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Questions

How much does Medicare pay Erlanger Health System for a knee or hip replacement?

In 2024 the average total payment to Erlanger Health System for an inpatient hip or knee replacement stay was $16,702 (MS-DRG 470, 138 Medicare stays; Medicare's payment plus the patient's deductible and coinsurance), and the Medicare allowed amount averaged $11,031 per outpatient case (APC 5115, 359 cases).

What is Erlanger Health System's list price for a joint replacement?

The hospital's average list (chargemaster) price for an inpatient hip or knee replacement was $43,357, 2.6× 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 Erlanger Health System?

Yes for Medicare facility payments. Riverfront Surgery Center, an orthopedic surgery center 1.2 mi away, is paid about $8,376 by Medicare for a knee replacement (CPT 27447), $8,326 less than an inpatient stay at Erlanger Health System. Not every patient is a surgery-center candidate.

How does Erlanger Health System compare with other Tennessee hospitals?

Erlanger Health System's average total payment per Medicare stay is higher than 93% of the 29 Tennessee hospitals that report inpatient hip or knee replacement.

What do commercial insurers pay Erlanger Health System 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 $19,357 across 4 insurers, ranging from $17,837 to $20,918.