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Island Hospital: what a joint replacement costs

Anacortes, WA 98221 · CMS Certification Number 500007. 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
$9,864
Peacehealth Squalicum Surgery Center, 21.5 mi
Outpatient here
$13,285
135 Medicare cases, APC 5115
Inpatient here
$16,549
12 Medicare stays, MS-DRG 470

Medicare prices at Island Hospital

OperationInpatient paidList priceList ÷ paidOutpatient allowed
Hip or knee replacement$16,549$56,0803.4×$13,285
Shoulder replacement$21,845$60,6612.8×$18,798
Hip replacement after a fracture (DRG 522)$21,239$54,0022.5×—

Quality

Complications after hip or knee replacement: 6.3% (no different from the national rate). Readmissions: 7.5%. Overall Care Compare rating: 4 of 5 stars. Government · Acute · 43 beds

Washington requires a certificate of need for new surgery centers.

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Questions

How much does Medicare pay Island Hospital for a knee or hip replacement?

In 2024 Medicare paid Island Hospital an average of $16,549 per inpatient hip or knee replacement stay (MS-DRG 470, 12 stays) and $13,285 per outpatient case (APC 5115, 135 cases).

What is Island Hospital's list price for a joint replacement?

The hospital's average list (chargemaster) price for an inpatient hip or knee replacement was $56,080, 3.4× 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 Island Hospital?

Yes for Medicare facility payments. Peacehealth Squalicum Surgery Center, an orthopedic surgery center 21.5 mi away, is paid about $9,864 by Medicare for a knee replacement (CPT 27447), $6,685 less than an inpatient stay at Island Hospital. Not every patient is a surgery-center candidate.

How does Island Hospital compare with other Washington hospitals?

Medicare paid Island Hospital less than 58% of the 26 Washington hospitals that report inpatient hip or knee replacement.