Health Insurance
Average Hospital Stay in US Costs 504 Hours of Work
Paying a hospital bill is increasingly challenging for many American consumers, with some left to take on hefty medical debt.
This may be particularly true for those who require overnight hospital stays. According to the latest ValuePenguin study, the average hospital stay costs more than 500 hours of work — a figure that’s been on the rise for the past five years.
We analyzed how the cost of hospital stays has changed over time. We also determined how many hours a worker would need to put in, on average, to afford today’s hospital bills, and how that varies by state.
On this page
- Key findings
- U.S. hospital stays cost 504 hours of work, on average — here’s how that’s changed over time
- In which states do residents need to work the most (or least) hours to afford a hospital stay?
- For minimum wage workers, hospital stays are most expensive in Utah
- Expert tips: Getting fixed up without breaking the bank
- Methodology
Key findings
- U.S. residents with average hourly earnings must work 504 hours to cover a typical hospital stay. The average cost of a hospital stay is $2,873 a day, but the average stay is 4.6 days. Workers who make $26.22 hourly (the national average) would need to put in more than 500 hours if they owed the full bill.
- The cost of a typical hospital stay is up 98% since 2004. The jump drops to 35% when adjusted for changes in hourly earnings over time. In 2004, the typical hospital stay cost 374 hours of work.
- Oregon residents must work the most hours to afford an average hospital stay. A 4.6-day hospital stay in Oregon costs an average of $18,336. While that’s not the most costly total in the U.S., average hourly earnings in the state ($28.40) mean residents need to work 646 hours to cover a hospital stay. Utah (600 hours) ranks next, followed by New Mexico and Ohio at 581 hours.
- Wyoming is the most affordable place to stay in a hospital. With the average cost of a stay nearly two-thirds less than in Oregon, residents need to work 269 hours to cover a hospital stay. Mississippi (294 hours) and North Dakota (324) are closest.
- Residents who make minimum wage would have to work the most in Utah and the least in South Dakota. The number of work hours required for a minimum wage earner in Utah spikes to 2,126, versus 759 in South Dakota.
U.S. hospital stays cost 504 hours of work, on average — here’s how that’s changed over time
Hospital stays are undoubtedly expensive, but our latest research reveals how much consumers are shelling out for multiple-night visits. For workers who earn the average U.S. salary of $26.22 an hour, the typical hospital stay costs 504 hours of work.
That’s assuming patients are staying 4.6 days — the average length of a hospital stay — and paying an estimated average of $2,873 a day for inpatient and outpatient treatment. And, of course, this is true only if they’re footing the entire bill themselves.
Still, it’s a staggering figure, and it’s one that’s been on the rise. In fact, the cost of a typical hospital stay is up 98% since 2004, when hospital stays cost an average of $1,450 a day. With consumers earning an average hourly wage of $17.86 in 2004, the typical hospital stay cost 374 hours of work at that time.
How the cost of a hospital stay has changed over time
Year | Average cost of a hospital stay per day | Average hourly earnings | Hours of work needed to afford an average hospital stay |
|---|---|---|---|
| 2004 | $1,450 | $17.86 | 374 |
| 2005 | $1,522 | $18.33 | 382 |
| 2006 | $1,612 | $19.00 | 390 |
| 2007 | $1,696 | $19.51 | 400 |
| 2008 | $1,782 | $20.05 | 409 |
| 2009 | $1,853 | $20.48 | 416 |
| 2010 | $1,910 | $20.66 | 425 |
| 2011 | $1,960 | $20.94 | 430 |
| 2012 | $2,090 | $21.29 | 452 |
| 2013 | $2,157 | $21.56 | 460 |
| 2014 | $2,212 | $22.17 | 459 |
| 2015 | $2,271 | $22.89 | 456 |
Source: ValuePenguin analysis of Kaiser Family Foundation (KFF), Agency for Healthcare Research and Quality (AHRQ) and U.S. Bureau of Labor Statistics (BLS) data. Note: This assumes patients are staying 4.6 days — the average length of a hospital stay.
Wages have risen since 2004, but when adjusted for changes in hourly earnings over time, the average cost of a hospital stay is still up by 35%.
Given that health care spending has been rising for some time, ValuePenguin health insurance expert Nick VinZant says it’s not shocking that health care costs are going up. However, he believes the COVID-19 pandemic may have accelerated this upward trend.
"From health insurance costs and hospital expenses to drug prices, everything is getting more expensive every year," he says. "I also think we’ll find that the coronavirus pandemic sent that into overdrive. In fact, per-patient hospital expenses alone increased by 10% in 2020."
Despite this, VinZant doesn’t believe there’s a singular reason why health care costs have soared. Rather, he thinks it’s a combination of factors.
As the U.S. population ages, the prevalence of chronic illnesses, which are some of the costliest conditions to society, is rising. Care costs for chronic diseases can range from $173 billion a year for obesity to $305 billion a year for Alzheimer’s disease, according to the Centers for Disease Control and Prevention (CDC). The population of those 65 and older — the age group most at risk for chronic illnesses — grew by more than a third during the past decade, according U.S. Census Bureau data. Nearly three-quarters (74%) of Americans within this age group have at least one chronic disease, per the CDC. For those with self-reported symptoms of cognitive decline (such as memory loss and confusion), that percentage increases to 86%.
At the same time, medical equipment is getting more expensive and drug prices are going up. VinZant says these factors have created a situation where more people need more expensive care.
In which states do residents need to work the most (or least) hours to afford a hospital stay?
Broken down by state, we found that Oregon residents must work the most hours to afford an average hospital stay. A 4.6-day hospital stay in Oregon costs an average of $18,336. That’s not the most costly total in the U.S. — the average hospital stay cost is slightly higher in California, at an average of $18,441. But because the average hourly earnings in Oregon are just $28.40 (compared with $32.94 in California), Oregon residents need to work 646 hours to cover a hospital stay.
Following that, residents in Utah need to work 600 hours. Meanwhile, New Mexico and Ohio residents need to work 581 hours each, tying for third.
States with the least affordable hospital stays
Rank | State | Average cost of a hospital stay | Average hourly earnings | Hours of work needed to afford an average hospital stay |
|---|---|---|---|---|
| 1 | Oregon | $18,336 | $28.40 | 646 |
| 2 | Utah | $15,075 | $25.67 | 600 |
| 3 | New Mexico | $14,175 | $24.93 | 581 |
| 3 | Ohio | $14,517 | $25.56 | 581 |
Source: ValuePenguin analysis of KFF data, AHRQ data and BLS data.
Notably, the states where hospital stays are most expensive are among those with the fewest primary care providers (PCPs) per capita, according to a prior ValuePenguin study on primary care providersp. On a national level, there are 168.7 PCPs per 100,000 residents. By state, however:
- Oregon has 115.6 primary care providers per capita (third fewest by state)
- Utah has 135.4 primary care providers per capita (seventh fewest)
- New Mexico has 138.5 primary care providers per capita (11th fewest)
- Ohio has 169.8 primary care providers per capita (25th fewest)
On the other end of the list, Wyoming is the most affordable place to stay in a hospital. Wyoming residents need to work 269 hours to cover a hospital stay — nearly two-thirds less than residents in Oregon. Mississippi (294 hours) and North Dakota (324) rank as the second and third most affordable states, respectively.
States with the most affordable hospital stays
Rank | State | Average cost of a hospital stay | Average hourly earnings | Hours of work needed to afford an average hospital stay |
|---|---|---|---|---|
| 1 | Wyoming | $6,597 | $25.05 | 269 |
| 2 | Mississippi | $5,900 | $20.53 | 294 |
| 3 | North Dakota | $8,136 | $25.67 | 324 |
Source: ValuePenguin analysis of KFF data, AHRQ data and BLS data.
The primary care provider connection isn’t as clear here, but the most affordable states generally have higher rates of PCPs than the three least affordable states. Per 100,000 residents:
- Wyoming has 171.0 primary care providers per capita (26th fewest by state)
- Mississippi has 185.1 primary care providers per capita (30th fewest)
- North Dakota has 141.9 primary care providers per capita (14th fewest)
Research has linked higher prices paid for health care services to increased market consolidation among health plans, hospitals, medical groups or physician organizations, pharmacy benefit managers and other health care entities. Hospitals and medical groups are more able to control costs in places with fewer health care providers, leading to higher-priced hospital stays. In fact, one 2018 study published by the National Institutes of Health found that physicians in the most concentrated markets (or where there are many competing physicians) charged fees up to 11% higher than those in the least concentrated markets.
Meanwhile, hospital stay costs are generally lower when health insurers have more market power. Beyond having general health insurance coverage, VinZant also believes Medicaid coverage particularly plays a role in keeping costs down.
"Having insurance in general makes it more likely that health care providers will be paid, and it makes it less likely that patients will be stuck with high bills, both of which keep costs down," VinZant says. "But Medicaid in particular has tremendous bargaining power with health care providers and pharmaceutical companies, so they can sometimes negotiate prices more effectively than other insurance providers. I think costs would be even lower in Wyoming and Mississippi if they expanded Medicaid like many other states have done."
Full rankings: States with the least affordable hospital stays
Rank | State | Average cost of a hospital stay | Average hourly earnings | Hours of work needed to afford an average hospital stay |
|---|---|---|---|---|
| 1 | Oregon | $18,336 | $28.40 | 646 |
| 2 | Utah | $15,075 | $25.67 | 600 |
| 3 | New Mexico | $14,175 | $24.93 | 581 |
| 3 | Ohio | $14,517 | $25.56 | 581 |
| 5 | California | $18,441 | $32.94 | 572 |
| 6 | Washington | $17,753 | $33.05 | 549 |
| 7 | Arizona | $14,090 | $26.53 | 543 |
| 8 | Delaware | $15,138 | $28.76 | 538 |
| 9 | Vermont | $14,013 | $26.66 | 537 |
| 10 | Idaho | $12,074 | $23.05 | 535 |
| 11 | Indiana | $12,663 | $24.25 | 534 |
| 12 | New Hampshire | $14,612 | $28.50 | 524 |
Source: ValuePenguin analysis of KFF data, AHRQ data and BLS data.
For minimum wage workers, hospital stays are most expensive in Utah
But what about minimum wage workers? The number of hours that the lowest-earning consumers need to work is far higher across the board, though they’re highest in Utah. With hospital stays costing around $3,350 a day, residents here must work 2,126 hours to afford a typical 4.6-day stay.
Of course, states with the lowest federal minimum wage of $7.25 rank across the 10 least affordable states. Ohio is the only exception here. The state minimum wage is $9.30, but it ranks as the ninth least affordable state for minimum wage workers — above several other states with the federal minimum wage. However, with the average hospital stay costing $3,226 a day, it’s one of just three states with the federal minimum wage that charge more than $3,000 a day, on average, for a hospital stay. The other two — Utah and New Hampshire — rank as the first and second least affordable states for minimum wage workers’ hospital stays.
On the other end of the list, minimum wage workers in South Dakota must work 759 hours to afford a hospital stay — the lowest of any state. Generally, states with higher minimum wages are more affordable, although there are two exceptions here. Wyoming and Mississippi have federal minimum wages of $7.25, but they rank among the top 10 most affordable states for minimum wage workers’ hospital stays.
The affordability of these states can be partially explained in the section above. However, it’s also worth noting that the hospital stays in these states are the cheapest of any top 10 states.
Full rankings: States with the least affordable hospital stays for minimum wage workers
Rank | State | Average cost of hospital stay | Minimum wage | Hours of work needed to afford an average hospital stay |
|---|---|---|---|---|
| 1 | Utah | $15,410 | $7.25 | 2,126 |
| 2 | New Hampshire | $14,936 | $7.25 | 2,060 |
| 3 | Texas | $13,446 | $7.25 | 1,855 |
| 4 | Indiana | $12,944 | $7.25 | 1,785 |
| 5 | Pennsylvania | $12,926 | $7.25 | 1,783 |
| 6 | Wisconsin | $12,567 | $7.25 | 1,733 |
| 7 | Idaho | $12,342 | $7.25 | 1,702 |
| 8 | North Carolina | $11,629 | $7.25 | 1,604 |
| 9 | Ohio | $14,840 | $9.30 | 1,596 |
| 10 | Louisiana | $10,907 | $7.25 | 1,504 |
| 11 | Tennessee | $9,400 | $7.25 | 1,491 |
| 12 | South Carolina | $9,364 | $7.25 | 1,485 |
Source: ValuePenguin analysis of KFF, AHRQ and MinimumWage.com data.
Expert tips: Getting fixed up without breaking the bank
These high hospital costs may be daunting for consumers, but receiving a hefty bill isn’t an end-all, be-all. VinZant says there are several things you can do to keep hospital costs down. For starters, he recommends:
- Pick the insurance plan that’s right for you. To do that, VinZant says you should understand the plans’ benefits and the type of care you need. For example, if you have a chronic illness, you may want to avoid getting a plan with a high deductible.
- Set up a health savings account. Health savings accounts can provide a crucial safety net if a medical emergency arises. Additionally, depending on your eligibility, your contributions may come from your pretax paycheck, which can help you save in the long run.
- Check your medical bills. Many medical bills may contain errors, so VinZant says it’s crucial to ensure you’re paying for the correct services.
Methodology
ValuePenguin researchers analyzed various data sources to calculate how many hours Americans need to work to afford an average hospital stay.
Researchers started with the average daily cost of a hospital stay from the Kaiser Family Foundation, via the American Hospital Association. They then multiplied the average length of a stay — 4.6 days, via the U.S. Agency for Healthcare Research and Quality — by the average daily cost and divided that number by average hourly earnings — via the U.S. Bureau of Labor Statistics. Researchers repeated this process for each state, then ranked them using this metric.
To calculate minimum wage rankings, researchers pulled minimum wages for each state from MinimumWage.com, then repeated the same process to rank the states.