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← ResearchReport 02 · 2026-08-03
For employers and plan sponsors · Medicare inpatient margin · 2024

Why your hospital rates are what they are

Half the surgical work at a typical hospital does not cover its cost under Medicare. Nobody stops doing it. Somebody covers the difference, and if you buy commercial coverage, that somebody is you.

Ben Tenner · measured, sourced, reproducible
135%
Cardiac stenting, cost vs payment
the LEAST device-intensive
procedure we measured

Stenting costs the hospital more than Medicare pays for it. Joint replacement roughly breaks even. Yet a joint replacement is half hardware by cost, and a stent case is only a fifth. So the device is not what decides it. The rate is.