168 patients with knee osteoarthritis of Kellgren-Lawrence (KL) grade 2 or higher were randomized to receive non-operative physical and medical therapy with or without surgical arthroscopic intervention (debridement and/or tissue resectioning). The purpose of this study was to determine if the addition of surgical treatment to non-operative therapy proved to be cost-effective when compared to patients who received non-operative therapy only. Results demonstrated that the combination of surgical and non-surgical therapy was unlikely to be cost-effective when compared to non-surgical therapy alone, as evidenced by economic analyses from both societal and healthcare payer viewpoints.