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 When patients know wh at amount to pay upfront, they will be more than willing to pay. This helps in reduction of the amount of care that remains uncompensated The goal of every healthcare facility should be to inform patients how much they owe and when the amount is due for collection 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 When there is price transparency, there will delivery of quality services. High cost of care is usually blamed on the scarcity of information regarding price The push for price transparency has been going on for many years now. Many people are left in the dark when they seek in-patient care as they don’t know how much they will get charged. 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 Healthcare spending is growing above the rate of inflation and patients are burdened with the rising demand to shop for healthcare services Many insurers opt to ask for costs from doctors before doing any tests.
It is tough for a provider to come up with accurate cost of a service before knowing the standard price Prices differ in thousands of dollars in hospitals that are in the same locality. It is not uncommon for hospital to charge more than what is provided by insurance companies. When price transparency is not available many patients find themselves in a situation where they have insufficient fund to clear hospital bills.
If consumers know the accurate amount to pay, they can easily choose which healthcare facility to go for treatment. It comes as no surprise that there are physicians who don’t know the standard cost of the 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 A lot of progress is expected to be made as many healthcare provider use a cost estimator tool to give insured patients a cost estimate
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