Wide variation found in prices among Minnesota hospitals

Minnesota hospitals may be paid anywhere from $6,186 to $46,974 for a knee replacement, raising questions about why the same procedures can have such wildly different prices within the same state.

The report from the Minnesota Department of Health found similar variations for other procedures. A normal baby delivery can cost between $2,872 and $12,303. A C-section delivery ranged from a low of $4,693 to a high of $22,831.

While insured customers were likely insulated from the most drastic price differences, above average payments will drive up insurance premiums. If the patient is an increasingly prevalent high-deductible plan, they may be on the hook for a bigger bill if they don’t have an opportunity to compare hospital prices.

"Prices in most cases are really secretive in health care," Stefan Gildemeister, the state's health economist, told the Minneapolis Star-Tribune. "What that translates into is providers are able to charge higher prices than they would be able to do if the veil were lifted off those prices."

The study didn’t identify hospitals by name, a decision criticized by the healthcare purchasers represented by the Minnesota Health Action Group. The Minnesota Hospital Association, however, dismissed the report as “pretty sensationalized.”

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