We previously showed that patients undergoing transabdominal preperitoneal laparoscopic inguinal herniorrhaphy (TAPP) returned to activity twice as fast as open herniorrhaphy without mesh but that TAPP was twice as expensive. However, it was not clear if the immediate postoperative benefits offered by TAPP resulted from smaller incisions and less tissue dissection or from the requisite tension-free placement of mesh. We have therefore completed a prospective outcome and cost analysis comparing TAPP (n = 59) to open preperitoneal mesh herniorrhaphy (PPO) (n = 40) to determine the differences between the two different surgical techniques. When comparing unilateral repairs, there was no difference in hernia type. PPO patients were older (P < 0.05) and their operations were shorter (P < 0.01). Comparison of outcome parameters of pill days, out-of-house activity, and intial day to full activity revealed no difference. Cost analysis showed that total costs, disposable equipment costs, and operating room time costs were significantly less for PPO (P < 0.01). There were two major complications (3%) and twelve minor complications (20%) in the TAPP group while PPO exhibited no major and five minor complications (12%). Follow-up data revealed one recurrence in the TAPP group. There were no recurrences in the PPO group at only 7 months average follow-up. We conclude that since both procedures had similar outcomes in the immediate postoperative period, the increased cost of TAPP and increased potential for both major and minor complications make it difficult to justify its routine use.