OBJECTIVES: Parkinson’s disease (PD) is a degenerative brain disorder of adult onset that impairs motor function.  As PD progresses, patients experience reductions in physical functioning and overall quality of life. Deep brain stimulation (DBS) is an implanted medical device that delivers electrical stimulation to specific area(s) of the brain that control movement and muscle functioning. DBS has been shown in clinical trials to significantly improve motor functioning, reduce disability and improve the quality of life in patients and caregivers of PD patients.  The objective of this study is to compare the healthcare utilization and costs of PD patients receiving DBS versus medically management. METHODS: Patients with PD between 2006 and 2008 were identified the MarketScan Commercial Claims and Encounters database. PD patients were segmented into medically managed patients and deep brain stimulation (DBS) patients. Medically managed PD patients were required to be on at least one anti-parkinsonian medication. DBS patients were identified using surgical procedure codes for lead implantation; an indexed look-back period was used to ensure DBS patients were newly implanted. All patients were followed for one year.  Annual healthcare utilization and per patient healthcare costs were compared. RESULTS: We found that DBS patients had significantly fewer inpatient hospitalizations (1.6 v. 2.4) and shorter lengths of stay (2.8 v. 6.2) compared to medically managed PD patients (p<0.01). However, DBS patients had significantly higher inpatient costs, resulting from the costs associated with DBS implantation. DBS patients had significantly lower annual pharmaceutical costs than PD patients ($7,105 v $11,735). The differences may be underestimated as DBS patients typically have more advanced PD than medically managed. CONCLUSIONS: Our results demonstrate that medically managed PD patients accrued significantly higher pharmaceutical costs and inpatient hospitalization stays compared to DBS patients. These results suggest DBS patients may require fewer medications to manage PD symptoms.