Objective: Total hip arthroplasty (THA) is a common and successful procedure with nearly 250,000 primary arthroplasties performed yearly in the United States. This number is estimated to increase by at least 5% annually over the next decade. The resulting growth in health care utilization and costs maybe offset by innovative implant technologies with increased survivorship. This study quantifies the economic cost savings to payers from improved survivorship. Methods: A simulation model is developed to estimate the long-term cost implications of improvements in THA survivorship. The model considers costs associated with all primary hip replacements performed in the United States over a ten-year horizon. The analysis draws upon the literature to obtain information on long-term revision rates for hip replacement surgeries. Inpatient treatment costs associated with THA and incidence and costs of the major complications, deep vein thrombosis and infection are included in the model. Results: Improved implant survivorship in THA is estimated to save $1.6 billion over a ten-year horizon. The majority of these savings accrues from lower revision rates ($1.3 billion) with fewer complications accounting for $300 million in additional savings. Sensitivity analyses reveal that cost savings varied by survivorship ($1.1 to $2.0 billion) and hospital cost for revision surgery ($1.3 to $3.1 billion). Other variations by physician costs, complications costs and discount rates are less pronounced. However, under every scenario, costs savings are in excess of $1 billion. Conclusion: The economic value of newer technologies with longer term survivorship will play an important role in meeting the growing demand and financial burden of THA. Improved THA survivorship will also enhance patients' quality of life. Therefore, the longevity of these innovative implants will be an important factor in evidence based decision making and economic evaluation of THA.