The purpose was to define the economic and health costs of waiting for total hip joint replacement surgery. A prospective cohort of 122 patients requiring primary hip arthroplasty (HA) was recruited from four hospitals in the lower North Island. Health related quality of life (HRQL), using self-completed WOMAC questionnaires, was assessed monthly from enrolment pre-operatively to six months post surgery. Monthly cost diaries were used to record medical, personal and other costs. Data was analysed using PC-SAS to test the strength of associations between costs and waiting times, and changes in HRQL pre- and post-surgery. The mean waiting time was 5.2 months and mean cost of waiting for surgery was $1,376 per person per month (pp pm) with medical, personal and social costs contributing $404, $399, and $573, respectively. Waiting more than 6 months was associated with an increased cost of $730 pp pm for a total cost of $2177 pp pm (p<
0.003). Age was correlated with greater loss of income (<
65 years) (p=0.001) and higher medical costs (<
65 years) (p=0.08). An incremental improvement over time in WOMAC scores post-operatively was identified (p=0.0001). Older age (p=0.01), community services card use (p=0.003) and a greater number of months waiting (p=0.1) were negatively correlated with post-surgical improvement after adjusting for other variables. Longer waits for HA incur greater economic costs and impact on patient recovery. This lends weight to the view that a shorter waiting time for HA significantly reduces costs to individuals and society and improves health outcomes.