Yes. In order to remove the old, diseased hip joint the doctor carefully pops it out of the socket. Muscles, capsule, and connective tissue are often cut in order to do this. Sometimes the soft tissues are sewn back or reattached to the bone, but not always.
Once the new implant is in place, the joint is "reduced" or put back in place. The patient is given strict instructions about what movements and positions to avoid. This is to prevent the hip from dislocating again while the tissues are healing.