3 Lessons Learned: Ratings

The Need for Price Transparency in the Healthcare System

Price transparency is important in making effective programs and in service delivery It is the only way to improve patients experience when they seek treatment in healthcare facilities. When patients know wh at amount to pay upfront, they will be more than willing to pay. This will get rid of delivery of care without getting compensation. Patients need to be well informed on the amount to pay and by what time This will help patients make an informed decision when choosing healthcare providers.

It is important to note that majority of healthcare facilities and insurance providers are working hard to improve transparency in the services they deliver Transparency increases the rate of success in providing quality services Scarcity of information on pricing results in cost of care There has been a push for improvement on price transparency for many years Consumers are usually left in the dark about what they are expected to pay after going for in-patient services Healthcare providers can make cost conscious decisions with price transparency and patients can also choose which healthcare facility best suits them.

The healthcare system is considered to be dysfunctional when patients cannot compare prices with other service providers There are changes that can be seen especially with the pressure mounted on providers, insurers and drug makers to provide pricing and better drugs There is rising demand for patients to shop for healthcare services as healthcare spending is higher than the cost of inflation. There are alternative payment methods that require providers to get information from doctors on what the cost of ordering certain tests

If providers don’t know the standard price of treatment, it can be difficult to come up with an accurate figure. Prices are known to vary up to thousands of dollars in hospitals that are in the same neighborhood It is not uncommon for hospital to charge more than what is provided by insurance companies. This is why price transparency is important to avoid running into unwanted cost that could be easily avoided

If consumers know the accurate amount to pay, they can easily choose which healthcare facility to go for treatment. There are times that physicians don’t even know the cost of services they provide.

In addition, it gets complicated when the patients don’t even know the amount covered by the insurance companies. If a patient goes for treatment and it leads to discovery of another condition, the estimates may differ greatly. It means there is a lot of coordination needed between providers and the health plan to get an estimate of prices However there is some progress as major health plans have a cost estimator tool for insured patients to find a service that can provide a cost estimate…

Read more