What does a knee or hip replacement cost?
In 2024, hospitals billed an average of $93,184 for an inpatient hip or knee replacement, and Medicare paid an average of $14,322 of it (CMS, 2024). What you pay is usually your deductible, coinsurance and out-of-pocket maximum, not that sticker price. Two things move the total most: your plan, and whether surgery happens in a hospital or an outpatient surgery center.
The national numbers
| Setting | Average hospital charge | Medicare allowed / paid |
|---|---|---|
| Hospital inpatient — hip or knee replacement (DRG 470) | $93,184 | $17,364 total payment / $14,322 Medicare paid |
| Hospital outpatient — total knee (CPT 27447) | Not reported in dataset | $12,381 allowed / $10,750 Medicare paid |
| Hospital outpatient — total hip (CPT 27130) | Not reported in dataset | $12,476 allowed / $10,847 Medicare paid |
National Medicare averages for 2024, facility only. Surgeon and anesthesia are billed separately. Commercial plans negotiate their own rates. Sources: CMS Medicare Inpatient Hospitals by Geography and Service; CMS Medicare Outpatient Hospitals by Geography and Service.
That gap between charge and payment is why an online list price tells you little, and it keeps growing: adjusted for inflation, Medicare's inpatient payment for joint replacement fell 13.4% from 2013 to 2023 while hospital charges rose 19.9% (Thompson et al., 2026). Shoulder replacement uses different billing codes; see the shoulder page.
Where the money goes
- Facility
The biggest line item
Operating room, recovery space and staff time. This is where hospital and surgery-center bills differ most.
- Implant
The hardware itself
Included in the facility figures above, and similar in either setting. About 82% of total knees are still in place at 25 years (Evans et al., 2019).
- Surgeon
The professional fee
Billed separately from the facility, and usually the smallest of the three main lines.
- After
Anesthesia, therapy, follow-up
Anesthesia bills separately. Physical therapy runs per visit under your PT benefits; ours is in-house.
Why the surgery center changes the math
Our surgeons operate at the Sterling Ridge / Woodforest Ambulatory Surgical Center, built with Memorial Hermann on the Woodforest campus, with three operating rooms and physical and aquatic therapy on site. For the right patients, same-day joint replacement costs less than a hospital stay, and the hip and knee surgeon societies call it safe and effective for properly selected patients (AAHKS, 2024). Same surgeon, same implant, your own bed that night. The robot comes too.
Your surgeon chooses the setting with you, based on your other medical conditions, your support at home and the complexity of the surgery. Sterling Ridge is one of the leading joint replacement practices in the Houston area, serving The Woodlands, Spring, Conroe and Montgomery County. Our surgeons also hold privileges at several area hospitals, so if your plan or your health calls for one, surgery is scheduled there. Is outpatient joint replacement safe?
Insurance: the short version
We're in-network with Aetna, Blue Cross Blue Shield, Cigna, Medicare and United Healthcare. Before anything is scheduled, our team verifies your benefits: deductible, out-of-pocket maximum, prior authorization. The estimate you get is yours, not an internet average.
How to get a Sterling Ridge estimate
- Book a consult at The Woodlands, Spring or Woodforest, Monday through Friday, 8:00 AM to 5:00 PM. No referral needed.
- We verify your benefits once surgery is recommended, then put the facility, surgeon and anesthesia costs in writing before you pick a date.
- No insurance, or a high deductible? Our self-pay pricing is published.
The deductible timing question
If you've already met your deductible this year, from the MRI and injections that got you here, surgery before December 31 can cost far less than the same surgery in January, when the meter resets. That's why our fall consult calendar fills first.
Common questions
How much does a knee replacement cost with insurance?
Usually your plan's deductible, coinsurance and out-of-pocket maximum, not the sticker price. For scale, Medicare's 2024 national allowed amount for an outpatient total knee averaged $12,381, and $12,476 for a total hip (CMS Outpatient, 2024). Those are facility figures only; surgeon and anesthesia bill separately, and commercial plans set their own rates.
Is surgery cheaper at a surgery center than a hospital?
For properly selected patients, yes. A review of 41 studies found outpatient hip and knee replacement cost about $6,800 less than inpatient, with no difference in complications, readmissions or outcomes (Bemelmans et al., 2022). Your own numbers depend on your plan, which is why we check them first.
Does Medicare cover knee and hip replacement?
Yes. Medicare covers medically necessary knee, hip and shoulder replacement. Knee replacement came off Medicare's inpatient-only list in 2018 and hip replacement in 2020 (AAHKS; CMS, 2020), so both can be covered as outpatient procedures. Your share depends on your Medicare or Medicare Advantage plan.
Can I get a real estimate before deciding on surgery?
Yes, that's standard here. Our team verifies your benefits before anything is scheduled, then gives you a written estimate covering the facility, surgeon and anesthesia components as your plan applies them. If you're uninsured or prefer to pay directly, see our self-pay pricing.
Sources
- CMS. Medicare Inpatient Hospitals by Geography and Service, 2024 (DRG 470).
- CMS. Medicare Outpatient Hospitals by Geography and Service, 2024 (CPT 27447, 27130).
- Thompson et al. Trends in Medicare payment and hospital charges for joint replacement, 2013–2023. 2026.
- Bemelmans YFL et al. Safety and efficacy of outpatient hip and knee arthroplasty: systematic review of 41 studies, 2022.
- AAHKS, Hip Society, Knee Society, AAOS. Position Statement on Outpatient Joint Replacement, 2024.
- AAHKS. Removal of TKA from the Medicare inpatient-only list, 2018.
- CMS. CY 2020 Hospital Outpatient PPS and ASC payment fact sheet (hip replacement removed from inpatient-only list).
- Evans JT et al. How long does a knee replacement last? Lancet, 2019.
Medically reviewed by Keith W.V. Johnson, MD, FAAOS · Updated October 21, 2026