The Importance of Price Transparency in Healthcare
Effective service delivery is possible through price transparency Being transparent about prices improves the experience of patients in the healthcare system Majority of patients will be more than willing to pay as long as they get informed earlier on the amount expexted This helps in reduction of the amount of care that remains uncompensated Each healthcare facility needs to inform patients on what the amount owed and the duration needed to make payment. This will help patients make an informed decision when choosing healthcare providers.
Most insurance providers and healthcare facilities are striving hard to improve price transparency in services delivered Transparency increases the rate of success in providing quality services High cost of care is usually blamed on the scarcity of information regarding price This is why there is a push for price transparency that has been going on for many years Many people are left in the dark when they seek in-patient care as they don’t know how much they will get charged. Price transparency gives patients an opportunity to compare healthcare systems and choose the best and enable healthcare providers to make cost conscious decisions
The health care system cannot be functional if people cannot compare the
pricing with other services as they don’t know the exact value of the purchase However, thing seem to take a turn for the best as providers, insurers and drug makers are making progress in pricing transparency and delivery of quality 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
It can be hard to know the actual cost without knowledge of the standard price 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 how many people find themselves with insufficient funds yet they thought the amount will get covered by the insurance company
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. The estimates tend to vary greatly if a patient goes for treatment and another underlying condition is discovered Proper coordination between health planners and providers is necessary in getting estimate of the price. 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