Hip and knee replacements have become some of the nation’s most commonly performed surgeries with hundreds of thousands of Americans, many of them older, having their knees or hips replaced with metal, plastic or ceramic each year. Uncle Sam’s Medicare program is paying around $7 billion annually for all this work. But here’s a nasty revelation about knee replacements, in particular: Hospitals don’t know how much they cost.
In case you ever doubted the profit-seeking motive in these institutions’ practices, the Wall Street Journal reported some eyebrow-raising information on hospital pricing and costs, based on a Wisconsin facility’s rigorous efficiency study of knee replacements.
The procedure had risen in price by 3 percent a year for almost a decade, hitting a $50,000 cost per such surgery by 2016, including coverage for the expense of surgeons and anesthesiologists.