Orthopedic Specialty Care:
Changing Lives One Patient at a Time
Changing Lives One Patient at a Time
What do surgeons make for a Medicare total joint replacement?
| Total Knee Replacement | Amount | Percent of payment | Source |
| Average allowable Medicare fee for total knee replacement, 2007 | $1,391.00 | Hogan, Christopher, Ph.D. survey of CMS data | |
| Operating costs | $329.67 | 24% | Cost Survey for Single-Specialty Practices, 2008 (based on 2007 data) |
| Support staff | $328.28 | 24% | Cost Survey for Single-Specialty Practices, 2008 (based on 2007 data) |
| Benefit costs for physician (health insurance, etc.) | $75.11 | 5% | Cost Survey for Single-Specialty Practices, 2008 (based on 2007 data) |
| Income tax | $182.25 | 28% | IRS withholding calculator, based on two dependent children |
| Net income | $475.69 | 34.2% |
| Total Hip Replacement | Amount | Percent of payment | Source |
| Average allowable Medicare fee for total hip replacement, 2007 | $1,357.00 | Hogan, Christopher, Ph.D. survey of CMS data | |
| Operating costs | $321.61 | 24% | Cost Survey for Single-Specialty Practices, 2008 (based on 2007 data) |
| Support staff | $320.25 | 24% | Cost Survey for Single-Specialty Practices, 2008 (based on 2007 data) |
| Benefit costs for physician (health insurance, etc.) | $73.28 | 5% | Cost Survey for Single-Specialty Practices, 2008 (based on 2007 data) |
| Income tax | $177.80 | 28% | IRS withholding calculator, based on two dependent children |
| Net income | $464.07 | 34.2% |
Medicare also requires physicians to provide 90 days of patient evaluation and management services following surgery, for no additional payment.