Updated April 2026
New Jersey Hospital Costs
New Jersey has 79 Medicare-participating hospitals reporting an average total payment of $20,736, well above the national Medicare baseline of $15,878. Within the state, payments span roughly 2× from the lowest- to highest-reporting facility, and 3% of hospitals carry an A grade against 4% at F under the HospitalCostData Value Score.
New Jersey's 79 CMS-reported hospitals average $20,736 per procedure. 33 carry a D or F on the LakeQuality value rubric, a higher share than most states — typically a signal of payment levels that outrun quality measures.
New Jersey's hospital costs span a moderate range: Atlanticare Regional Medical Center - City Campus averages $14,583 while Carewell Health Medical Center averages $29,842. The roughly 105% spread is enough to matter for high-cost procedures but not so wide that location dominates the decision. The D-and-F-heavy distribution in New Jersey usually reflects a combination of high-cost academic medical centers and rural facilities whose volume is too low to score well on the federal Hospital Compare measure set.
New Jersey Cost Context
New Jersey sits in the higher-cost band of US hospital reimbursement — consistent with its elevated Medicare wage index and the concentration of academic and tertiary referral centers in its larger metros.
Average payment alone does not tell the full pricing story. Medicare standardizes payment across the country using DRG weights, but the dollar amount each hospital actually receives is adjusted by the regional wage index, indirect medical education adjustment for teaching status, and disproportionate-share adjustment for safety-net facilities. For privately-insured patients, the more relevant figure is the negotiated commercial rate published in each hospital's machine-readable price-transparency file under the CMS Hospital Price Transparency Rule.
Quality Distribution Across New Jersey
Across the state's reporting hospitals, the HospitalCostData Value Score distribution runs 2 A, 8 B, 36 C, 30 D, 3 F. The Value Score combines Medicare DRG payment data with quality measures from the CMS Hospital Compare program. It is a starting reference, not a clinical recommendation.
For a planned admission, the most useful complement to the Value Score is direct review of the underlying CMS measures: 30-day mortality, 30-day readmission, hospital-acquired condition rate, HCAHPS patient-experience scores, and (for surgical care) facility volume. The Agency for Healthcare Research and Quality publishes the underlying Patient Safety and Inpatient Quality Indicators that feed many of these CMS measures.
Lowest-Reporting Hospitals in New Jersey
Hospitals reporting the lowest Medicare average payments. Lower averages can reflect lower wage indexes, less complex case mix, or shorter average lengths of stay.
Atlanticare Regional Medical Center - City Campus
Saint Michael's Medical Center
Essex County Hospital Center
Silver Lake Hospital Ltach
Trenton Psychiatric Hosp
Summit Oaks Hospital
Community Medical Center
Virtua Mount Holly Hospital
St Luke's Warren Hospital
Ahs Hospital Corp
Highest-Reporting Hospitals in New Jersey
Hospitals reporting the highest Medicare averages. High averages frequently reflect academic medical centers, tertiary referral facilities, and complex case mix.
Carewell Health Medical Center
Hudson Regional Hospital
St Joseph's University Medical Center Inc
Robert Wood Johnson University Hospital At Rahway
Aspen Hills Healthcare Center
Weisman Childrens Rehabilitation Hospital
St Mary's General Hospital
Hackensack Meridian Health Pascack Valley Medical
Bergen New Bridge Medical Center
Jefferson Stratford Hospital
Frequently Asked Questions
What is the average hospital cost in New Jersey?
New Jersey's 79 Medicare-participating hospitals report an average total payment of $20,736 per admission. That sits well above the national Medicare baseline of $15,878. Within the state, the cheapest reporting facility averages $14,583 and the most expensive averages $29,842 — roughly a 2× spread.
Why are hospital costs different in New Jersey versus other states?
State-to-state variation is primarily driven by Medicare wage indexes (which calibrate DRG payments to local labor costs), case mix at major academic medical centers, and the share of high-acuity referral facilities versus community hospitals. New Jersey sits in the higher-cost band of US hospital reimbursement — consistent with its elevated Medicare wage index and the concentration of academic and tertiary referral centers in its larger metros.
Does a higher state average mean worse value for patients?
Not directly. Higher Medicare averages often reflect a concentration of academic and tertiary referral centers handling complex cases, not price-gouging. Quality varies hospital by hospital and is published separately on CMS Care Compare. The Value Score on this site is a starting reference, not a clinical recommendation.
Where does New Jersey hospital data come from?
Payment data is sourced from the Medicare Inpatient Prospective Payment System (IPPS), which CMS publishes annually. Quality measures come from the CMS Hospital Compare program. Both are public-domain federal datasets. Hospital-specific machine-readable rate files are published under the CMS Hospital Price Transparency Rule.
Should I pick a New Jersey hospital based on price?
No — pricing is one input. Surgeon experience, hospital volume, complication and readmission rates, and your specific clinical situation matter at least as much. Discuss any planned admission with your physician and review CMS Care Compare quality data alongside any pricing benchmark.
See the methodology page for Value Score weights, payment-system caveats, and known data limitations.
Sources & Citations
- CMS Medicare Inpatient Hospital Payments (IPPS). DRG-level average covered charges, total payments, and Medicare payments per facility. data.cms.gov
- CMS Hospital Compare (Care Compare). Star ratings, mortality, readmission, safety-of-care, and patient-experience measures. medicare.gov/care-compare
- CMS Hospital Price Transparency Rule. Standard charge files required from every Medicare-participating hospital. cms.gov/hospital-price-transparency
- Agency for Healthcare Research and Quality (AHRQ). National benchmarks, quality indicators, and clinical context for hospital outcome measures. ahrq.gov
Dataset last refreshed: April 2026. Underlying CMS files are public domain. Suggested citation: “HospitalCostData, hospitalcostdata.com, accessed May 24, 2026.”
This page is informational only and does not constitute medical, legal, or financial advice. Care decisions should be made with a licensed physician.
Source: CMS Hospital Price Transparency, 2026.