In 2011, total product revenue from hip implants in the U.S. was approximately $2.8 billion and it’s projected to grow to $3.3 billion by 2016. Primary drivers for the increase in the hip replacement market include demographics, the aging population, and advancements in the technology.

The growing use of hip implants makes it an important focus for healthcare organizations that are trying to manage their costs. Types of hip replacement procedures include total hip, partial hip (or hip resurfacing), and revisions with replacement components that include the stem, femoral head, acetabular cup, and shell. These components are designed to be cemented or non-cemented, and can include ceramic or non-ceramic inserts. Pricing shown below includes all components, such as cemented and non-cemented, ceramic and non- ceramic. In the last couple of years, some of the focus has shifted to more personalized instrumentation, as well as a minimally invasive approach and robotic assistance.

As with most consumable items, lower prices are usually achievable by standardizing on one vendor. Additionally, market-share agreement offers more leverage during negotiations. If standardizing is not possible, then signing multi-year agreements with multiple vendors can help. However, when negotiating multi-year agreements, ensure that prices are locked in for the term of the agreement to avoid price hikes. Also, consider using a trusted source to review contracts and pricing to make sure they are in line with what the rest of the market is seeing for these products.

Hip Arthroplasty Procedures

Total Hip
Low High   Average  
$4,400     $7,200     $5,300     

Partial Hip
Low High Average   
$2,100     $4,000     $3,075   

Source: MD Buyline

Please note these numbers have been adjusted to exclude special deals, outliers, and unique circumstances.


Publication Date: Wednesday, November 20, 2013