Most Americans nowadays have no idea how much a knee surgery costs. In a recent study that kept track of all of the things that go into having a knee surgery or replacement Gundersan Health System reported that costs were almost five times as much as it cost the hospital.
In 2016 the average price for a knee surgery was $50,000. The actual cost reported during the study? $10,550 at most. Often times hospitals raise their prices on surgeries to cover costs to meet profit targets. A lot of patients with insurance tend to not shop around for other prices and just assume where they are going is average pricing. Americans spend more on health insurance and health costs more than other nations. The rise in hospital costs has exceeded economy wide inflation for the last 10 years. “When price isn’t tightly linked to cost, that is a sign that the market isn’t competitive,” said Harvard economist Leemore Dafny.
Knee replacement and surgery has become more common in the U.S. but prices are still increasing. Hospitals have starting list prices that they make confidential negotiations with different insurance companies. Ultimately Health Systems are trying to lower costs for the patients who are going to need knee surgery or replacement.