Hospital and Surgery Costs

Health care is big business, and Americans with medical needs are paying the bill.

In 2025, it’s estimated that even for people who have employer-sponsored healthcare, they’ll pay an average of almost $3,000 on insurance premiums alone.

And that number doesn’t even include out-of-pocket expenses — like surgeries, which can cost six figures or more.

What do you do if you need to have surgery or a hospital stay? In some cases, there are ways to manage or even reduce the bill.

Understanding the Cost of Medical Bills

Hospital costs can vary wildly depending on the hospital, the location, your insurance plan and more.

In 2022, the average cost of a one-day hospital stay in the U.S. was estimated at $3,025, but that figure is different depending on the state where you get care. Here’s the average cost in a variety of states:

• California: $4,337
• New York: $3,714
• Texas: $3,060
• Florida: $2,826
• Mississippi: $1,425

If surgery is involved, hospital prices can soar through the roof. Some of the most expensive procedures include organ transplants, and the price tags can pass $1M. Even with a plan like Medicare Part B, you could end up paying 20% of the bill out of pocket.

Considering the astronomical cost of care, it’s not surprising that 67% of people who file for bankruptcy say medical bills are the reason.

No Surprise Act

Considering the cost of care, getting sick can take an emotional toll on patients, many of whom worry about how they’ll pay for the services they receive.

“Rising health care costs for hospital stays and surgeries have created a new financial and emotional epidemic for Americans,’’ says Gail Trauco, an Atlanta-based oncology nurse, pharmaceutical trials expert and licensed grief mediator.

To help remove some of the shock for patients, the federal No Surprises Act went into effect Jan. 1, 2022. This law gives patients the right to request an up-front quote, and makes it illegal for hospitals to charge more than the in-network cost for medical services.

But understanding what’s covered and how to get the best, most affordable care, unfortunately still requires you to explore funding sources and educate yourself of your healthcare plan.

Hospital Costs

There are over 6,000 hospitals in the U.S. and there’s no standard system that determines what they charge for a particular service or procedure. However, many factors figure into hospital pricing for your visits, including:

• Your health circumstances
• The cost of services like lab tests and X-rays
• Surgical procedures, operating room and post-surgical costs
• The medications you receive
• Doctors’ and specialists’ fees

For example, the cost of gallbladder surgery is different for someone with diabetes than it is for a non-diabetic. Recovering from surgery in an Intensive Care Unit (ICU) or in a recovery room can also mean a difference of thousands of dollars.

If you want to get a sense of the total costs up front, one option is to request a good-faith estimate, or an estimate of what your total costs will be. But until the bill is processed, there is no guarantee of your final hospital costs.

How Many People Stay in Hospitals Each Year?

Around 36 million people stay overnight at a hospital each year, and that number is growing as the U.S. population ages. These are the most common reasons people stay at a hospital for at least one night:

1. Maternal and neonatal stays
2. Sepsis
3. Heart failure
4. Diabetes complications
5. Heart attack
6. Arrhythmia
7. Ischemic stroke
8. Kidney failure
9. Pneumonia
10. Urinary tract infection

How Much Does an Average Overnight Hospital Stay Cost?

It’s difficult to approximate the cost of staying at a hospital since there are so many variables that impact the price.

For example, if you visit the emergency room and end up being admitted overnight, you might accrue anywhere from $10,000 to $30,000 in expenses, and the part your insurer covers will vary.

For people who are admitted for planned procedures, however, the average stay is usually two to three days and the cost might start around $7,000.

Surgery Costs

How much does surgery cost? Unfortunately, the answer is usually a lot!

That’s because there are a lot of people and equipment involved in making surgery successful. You pay for the labor of a physician, anesthesiologist and nurses, along with the use of the operating room, instruments and sterilization, medications, recovery room, possibly a room for extended recovery time, consultations from other physicians … the list goes on and on.

And like any medical procedure, surgery prices depend upon lots of variables, from the procedure to the hospital and the type of insurance. For instance, a total knee replacement could range anywhere from $20,000 to $195,000.

For 2024, Resolve found that these were the 10 most expensive surgeries:

1. Heart transplant: $1.3M
2. Liver transplant: $1.1M
3. Bone marrow transplant: $950,000
4. Double lung transplant: $850,000
5. Intestine transplant: $750,000
6. Allogeneic bone marrow transplant: $700,000
7. Hematopoietic Stem Cell Transplant: $650,000
8. Pancreas Transplant: $600,000
9. Kidney Transplant: $500,000
10. Tracheostomy: $60,000

On top of these astronomical prices, there can be numerous “add-on’’ costs that aren’t absorbed until after the fact, such as consultations with the surgeon or anti-rejection medications. Even with the No Surprises Act, add-ons can be completely unexpected when the bill comes.

Factors Affecting the Cost of Surgery

If you haven’t noticed already, there’s a seemingly endless list of factors that go into determining how much you pay for surgery. Depending on the procedure, the various expenses could include the following:

• Type of surgery: Some surgeries are minimal, like a biopsy or colectomy, while some are more involved, invasive and costly, like an organ transplant.
• Inpatient or outpatient: If you have to stay in the hospital, it will drive up your total bill.
• Anesthesia: You may need local, regional or general anesthesia. The more extensive, the more expensive.
• Healthcare facility: Hospitals set their own rates, and the cost of a procedure can vary greatly between facilities.
• Region: Hospital and surgery prices vary depending on the region of the U.S.
• Insurance coverage: Insurers and providers negotiate prices, and patients with Medicare may get a lower price on the same procedure than patients with private insurance. The level of your plan coverage, as well as deductibles and more, can mean different prices for different patients.

Estimating the Price of Your Hospital Bill

Even with the No Surprises Act, it may be hard to get a good sense of your total costs up front. Here’s how you can improve your estimate:

• Your location: Look online, including your state government site, for information on area healthcare costs.
• Your network: Providers in your insurance network will cost less; providers not in your network will cost much more.
• Where you get care: Ambulatory care or service centers, urgent care, or a doctor’s office can be much more affordable than going to a hospital. Check your insurance coverage, though, to make sure the location is covered by your plan.
• Your insurance: Check with your insurer to find out what’s covered and what’s not.

How Health Insurance Can Lower Hospital Costs

Without a doubt, one of the best ways to reduce your hospital expenses is by carrying health insurance. Still, the type of insurance plays a big role in how much you’ll pay out-of-pocket.

With Medicaid, your hospital expenses may depend on your state, your income and other details.  Medically necessary hospital visits may be covered, while some patients will have to pay a copay or a portion of the bill.

If you have Medicare, inpatient hospital visits are covered by Part A if you visit a hospital that accepts Medicare. In 2025, you have a $1,676 deductible for the first 60 days of inpatient care.

If you have marketplace insurance through the Affordable Care Act (sometimes referred to as Obamacare), 60% to 90% of your covered expenses will be covered by your plan after you meet your deductible.

Surgery Costs Without Insurance

If you don’t have insurance — or if you’re undergoing a procedure not covered, such as weight loss or cosmetic surgery — you will have to be your best advocate.

Shop around, since providers’ costs vary a lot. Make sure the provider is complying with the No Surprises Act and will give you an estimate of what you’ll pay.

Do your homework and estimate all of your costs based on what you find, including:

• Surgeon’s bill
• Anesthesia
• Hospital care before and after surgery
• Labs
• Medications
• X-rays
• Doctor visits

Plan for contingencies (such as complications) that can increase costs, and be sure to discuss your payment options and establish what your payments will be.

If you can’t pay your medical bills, never ignore the hospital’s calls. If medical bills are in collections, the billing department might help you set up an interest-free payment plan, and even allow you to pay the rate that insurance companies negotiate for the procedure.

How to Pay for Surgery Costs Not Covered By Insurance

There are many creative ways to cover the cost of surgery if you aren’t insured, if your plan doesn’t cover a procedure or if your plan caps the amount it will cover. Just note that some options are riskier than others. Here’s what you need to know.

Borrowing from Retirement Savings

Borrowing from your 401(k) or 403(b) retirement plan might seem like a good solution, but it should only be an option in a medical emergency!

When you go this route, it means taking out a loan against your retirement balance. In other words, you turn your savings into debt and reduce the amount of money you’ll have for retirement.

With retirement loans, you pay yourself back through payroll deduction. Most plans will allow you to withdraw 50% of your vested balance (up to $50,000) for health care expenses, without a penalty.

Payment Plans

For patients who don’t have insurance, payment plans are a common solution. The payments for medical bills are usually split up into monthly bills, or simply be a zero-interest arrangement. Some providers might encourage you to apply for a medical loan or credit cards, but try working out a payment plan if possible.

Hospitals are usually happy to establish an affordable payment plan, especially with an unplanned or emergency surgery, since any payment is more attractive than none.

Medical Crowdfunding

GoFundMe and other crowdfunding sources, which are powered by donors, can be effective for covering medical needs in a pinch.

But if you go this route, keep in mind that you can’t predict how much money you’ll raise. One study over a five-year period found that 16% of medical campaigns raised nothing, and fewer than 12% reached their goal.

Even if your crowdfunding campaign is successful, be sure to budget for the percentage the campaign platform takes, usually 2.9%.

Using the Nest Egg

Do you have an emergency fund or other savings you can access without any penalties? If so, now is the time to tap into those funds.

Sure, spending your savings on medical expenses is not ideal, but that’s certainly one of the reasons to have an emergency fund. Plus, if the surgery improves your quality of life, it’s money well spent.

Home Equity Loans

Home equity loans (HELs) are an option to explore with caution. With HELs, you borrow your home’s equity, which is the value of the home that exceeds what you owe. In other words, you increase the debt you owe against your home. If you fall behind on payments, you could face foreclosure.

Home equity loans usually allow you to borrow up to 80% of your equity. What’s the benefit of going this route? If you have good credit and equity, you shouldn’t have trouble getting approved.

Unsecured Loans

Mortgages and car loans are “secured” by collateral, or property the lender can take if you don’t pay. Loans that don’t have collateral are called unsecured loans. They usually have higher interest rates and are harder to qualify for without good credit.

Some surgeons also have their own loan programs, but you might find better rates and terms through your local credit union or bank.

Shop Around

Studies show that most patients don’t seek pricing information or do any comparison shopping before receiving medical care.

However, you should definitely shop around if you’re not tied to a network, since hospitals and doctors charge different rates. Many state governments have online comparison tools, so patients can look up procedures and compare prices in their states.

Ask for Reduced Rates (Or Pay in Advance)

There are often discounts available, but you have to ask for them. You can also ask to pay what you can afford.

The key is not to be shy about asking. Even a $5 monthly payment toward a hospital bill might be accepted if it means the facility will collect some of the money you owe.

Charity

Consider a charity hospital if you can find one that meets your needs. For example, pediatric cancer patients can seek free treatment at St. Jude’s Children’s Hospital, and Shriner’s Children’s Hospitals offer free services for pediatric orthopedic patients.

Nonprofits and other organizations also provide financial help for cancer patients and people who need financial help. So, before planning a procedure, search online to see if any hospitals have special help for your situation.

Speak Up

Trauco says it’s helpful to become your own patient advocate.

“If you are truly in need, write about it and talk about it,’’ Trauco advises. “Contact your local newspapers and TV stations to get the word out. Good Samaritans are still among us, and a medical expert may offer assistance to a patient at no cost. Tell your story because someone else is also living a parallel trauma.’’

Debt Relief for Credit Card or Personal Loan Debt Due to Medical Costs

Medical bills can add up fast. Some people owe so much that they max out their credit cards or take on loans they can’t afford, just to cover the cost.

When you’ve had a medical crisis, the last thing you need is the stress of paying off medical debt you can’t afford. If you’re struggling to keep up with your debt, here are a few ways to get relief:

• Credit counseling: A certified credit counselor at a nonprofit credit counseling agency can talk to you for free, and they’ll walk you through options for reducing your medical costs, balancing your budget, managing debt and more. They can also help you discuss whether filing for bankruptcy is a viable solution.
• Debt consolidation: If you owe credit card debt, consider consolidating it by paying it off with a personal loan that has lower interest rates than your card or cards.

The bottom line is that you deserve to get medical help when you need it, without the added stress of financial fallout. But even if your bills are sky-high, there are often ways to reduce the cost and even find an affordable payment arrangement, you just have to know where to look.