Annual Report
The Hospital Price Gap Report 2026
Same Procedure, 10x the Cost
For the average procedure, the most expensive hospital charges 7x what the cheapest charges.
Published April 2026 · CMS data through 2025
Executive Summary
Hospital price transparency remains one of the most consequential consumer issues in American healthcare. After analyzing pricing data from 5,426 hospitals across 56 states, this report confirms that extraordinary price variation persists for identical procedures. The most extreme case shows a 8x gap between the cheapest and most expensive provider for the same treatment.
On average, across 25 tracked procedures, the price ratio between the cheapest and most expensive hospital is 7x. The national average payment per procedure is $15.9K. 189 hospitals earn our top "A" value grade — combining affordable prices with strong quality scores — while 65 hospitals earn an "F" for poor value.
Geographic variation is dramatic. States like American Samoa have substantially lower average costs, while Massachusetts hospitals charge premiums that are not consistently associated with better outcomes. Patients who can compare prices — and are willing to travel — can potentially save thousands of dollars on common procedures.
Procedures with the Largest Price Gaps
| Procedure | Min Price | Max Price | Price Ratio | Hospitals |
|---|---|---|---|---|
| Cervical Spinal Fusion without CC/MCC | $5.5K | $45.5K | 8x | 2632 |
| Heart Failure and Shock with MCC | $4.0K | $32.4K | 8x | 3034 |
| Major Hip and Knee Joint Replacement | $7.2K | $58.6K | 8x | 3348 |
| Respiratory System Diagnosis with Ventilator Support >96 Hours | $15.6K | $118.3K | 8x | 2717 |
| Hip and Femur Procedures Except Major Joint with MCC | $6.3K | $47.5K | 8x | 2631 |
| Spinal Fusion (Non-Cervical) with MCC | $12.6K | $94.6K | 8x | 2757 |
| Percutaneous Cardiovascular Procedure with Drug-Eluting Stent | $6.8K | $50.9K | 7x | 2739 |
| Cellulitis with MCC | $3.7K | $27.6K | 7x | 2899 |
| Renal Failure with CC | $3.3K | $24.7K | 7x | 2677 |
| Simple Pneumonia and Pleurisy with MCC | $4.4K | $32.7K | 7x | 2593 |
State-by-State: Cheapest vs. Most Expensive
Most Affordable States
Most Expensive States
Value vs. Price: Do Expensive Hospitals Deliver Better Care?
Our Value Score combines three factors: price percentile (40%, inverted so lower is better), CMS quality rating (40%), and patient outcomes score (20%). The data shows that high price does not reliably predict high quality. 189 hospitals earn an "A" value grade by combining reasonable prices with above-average quality, while 65 hospitals earn an "F" — many of which charge premium prices without matching outcomes.
This disconnect means informed patients can often find hospitals that deliver equivalent or superior care at substantially lower cost. The key is comparing both price and quality data, which is exactly what our hospital profiles provide for every facility in our database.
Methodology
This report uses CMS Hospital Price Transparency and Medicare IPPS data covering 5,426 hospitals and 25 inpatient procedures. Prices reflect total Medicare payments including DRG weight adjustments. The Value Score weights price percentile (40%), CMS star quality rating (40%), and composite outcomes (20%). See our full methodology for details.
Cite This Report
HospitalCosts. "The Hospital Price Gap Report 2026: Same Procedure, 10x the Cost." hospitalcostdata.com, April 2026. https://www.hospitalcostdata.com/report/hospital-price-gap-2026
Frequently Asked Questions
The largest price gap we found is a 8x difference between the cheapest and most expensive hospital for the same procedure (Cervical Spinal Fusion without CC/MCC). On average across all procedures, the most expensive hospital charges 7x more than the cheapest for identical care.
Hospital pricing is driven by market dynamics (lack of competition in rural areas), negotiated insurance rates, hospital ownership type (nonprofit vs. for-profit), teaching hospital status, cost of living differences, and varying levels of price transparency compliance. There is no federal requirement that hospitals charge similar prices for identical procedures.
American Samoa, Northern Mariana Islands, Puerto Rico rank as the most affordable states for hospital care based on average payment per procedure. Conversely, Massachusetts, California, New York are the most expensive.
Not necessarily. Our Value Score combines price with quality ratings and outcomes data. 189 hospitals earn an A for value (good quality at reasonable prices), while 65 hospitals receive an F — often due to high prices without corresponding quality advantages. Use our hospital lookup to compare value scores.
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