Need surgery? If you blow out a knee or slip a disk, you will likely discuss things like insurance, recovery time, paid time off, long-term effects and more.
But what about geography? State boundaries? City lines?
According to a recent study from the Health Care Cost Institute (HCCI), that topic of conversation might save (or cost) you more money than any other. The United States hasn’t instituted a flat rate for surgery. There is no fixed cost to get a hip replaced or a ligament repaired. It varies state by state, city by city, and some of the cost differences are eye-opening.
“There doesn’t seem to be a systematic pattern with respect to what’s high and what’s low,” said David Newman, executive director of HCCI, an organization who aims to provide accurate healthcare utilization costs so Americans can better understand the health system. Newman was the lead author of the study, published in the journal Health Affairs, which discussed the odd fluctuation of surgery costs by city and state.
Most Expensive Regions
Where does your city and state rank on the cost scale?
Well, it depends on the type of procedure. According to Newman’s study, The National Chartbook on Health Care Prices, the average knee replacement costs $33,098. Residents of South Carolina, however, are paying nearly $14,000 more for the exact same surgery.
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How about cataract removal with a lens replacement? Average cost: $3,292. Poor Alaskans draw the short straw again. They’re paying more than double that cost.
But it’s not so much a state problem as a city problem. That $33,098 knee replacement? You’ll pay either $3,000 less for it or $24,000 more, depending on where you’re at in California. Ditto Texas – people in Lubbock get a great deal on knees – $28,456. But drive five hours east to Dallas, and be prepared to pay 37% more for the same work.
That’s the story all over the country.
Least Expensive Regions
What about the other end of the spectrum? Who has the best deals on surgery?
For knee replacements, it doesn’t get better than New Jersey. They’re paying only 73 cents on the dollar for the procedure.
Ultrasounds? Make the drive to Arizona and you’ll save 25%, on average, for your trouble.
If you’re looking for cataract removal, you could do worse than Florida, where you’re charged only $2,300 for the $3,000 surgery.
Why are prices so unpredictable? Some experts cite the lack of competition for hospitals. In many regions, facilities have consolidated so that one large hospital takes control of the market. It’s thrown pricing completely out of whack.
But until it gets fixed, use it to your advantage. Research procedure prices in nearby cities and states, and you could save yourself some serious cash. Thousands of dollars, potentially. Take David Newman’s word for it.
“For every mile that a consumer drives south on I-95,” he said, “they [could] save $100.”
