How to Negotiate Surgery Costs

Surgery bills often involve multiple providers billing separately: the surgeon, the anesthesiologist, the facility, the pathologist, and sometimes the assistant surgeon. Each can be negotiated independently, and attacking the largest component first yields the biggest savings. The facility fee is typically the largest charge and the most negotiable.

Request an itemized bill from every provider involved in your surgery. Check the operating room time charges against the actual surgical time documented in your operative report. OR time overcharges of 30-60 minutes are common. Verify that implant costs are reasonable by requesting the manufacturer and model number and comparing against retail prices.

Medicare pays a fraction of what hospitals charge for most surgical procedures. For example, Medicare pays approximately $12,500 for a total knee replacement while hospitals charge $25,000-50,000. Presenting this comparison in a formal negotiation letter demonstrates that you have done your research.

If the surgery was performed at an outpatient surgery center, the total cost should be 30-50% less than a hospital-based procedure. Verify that you are being charged outpatient rates if appropriate. BillDelete generates surgery-specific negotiation letters that address each billing component individually.