This was combined with accurate costing data. At the time of this study, hospitals knew what they charged for total hip replacement but had very little information on costing. Two graduate students accurately costed both cemented and cementless total hip replacements at our institution and found that we could do each for approximately $10000 Canadian including all hospital and physician charges. This data was then combined with the time trade-off data to produce cost to quality adjusted life year data. We also collected the hip related cost to society of the patient and third parties for years one and two post-operatively, utilizing a detailed diary system. At two years post-operatively, the cost to QALY ratio was approximately $8200. We then compared this cost to QALY outcome data with other common medical surgical interventions. Laupacis et al. have developed a cost to QALY gradient to determine the cost effectiveness of various medical interventions. These interventions which are under $20000 are considered so cost effective that this intervention should be questioned. Interventions costing between $20001 and $100000 are moderately cost effective and probably should be funded. Those interventions over $100001 might be efficacious but are extremely expensive. Their adoption into clinical practice requires considerable discussion and analysis. Based on this assessment, it is obvious that total hip replacement represents one of the most cost effective medical and surgical interventions known.