The Need for Price Transparency in the Healthcare System
Effective service delivery is possible through price transparency Being transparent about prices improves the experience of patients in the healthcare system Patients are willing to pay if they know how much is needed upfront This will lead to reduction of the amount that remains uncompensated Each healthcare facility needs to inform patients on what the amount owed and the duration needed to make payment. These way patients are able to make informed decisions when seeking for services
There is a lot of effort from insurance companies and healthcare providers to improve price transparency. When there is price transparency, there will delivery of 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 Transparency will enable consumers to know which healthcare system to choose and give physicians an opportunity to make cost conscious decisions
The healthcare system is considered to be dysfunctional when patients cannot compare prices with other service providers However, things are changing with the pressure being put on insurers, drug makers and healthcare providers to offer a price and deliver quality drugs The cost of healthcare is higher than the rate of inflation rising the need for patients to shop for healthcare services Many insurers opt to ask for costs from doctors before doing any tests.
It can be hard to know the actual cost without knowledge of 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.
Price transparency will give patients an opportunity to choose healthcare facilities that they can afford It is not surprising to know that at times physicians don’t even know the price of services they provide
It is even worse when patients don’t have knowledge of how much their insurance cover is providing The charges can change drastically if a patient goes for treatment and another complication arises in the process It means there is a lot of coordination needed between providers and the health plan to get an estimate of prices Major healthcare plan use a cost estimator tool to give patients a cost estimate.