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 will lead to reduction of the amount 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 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. Transparency increases the rate of success in providing 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. When patients go for in-patient treatment, most of the times they have no idea what they are expected to pay Healthcare providers can make cost conscious decisions with price transparency and patients can also choose which healthcare facility best suits them.
If patients don’t know the exact vavue of services they cannot compare the pricing with other facilities, this makes the healthcare system dysfunctional. 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 payment plans that need healthcare providers to provide a cost before conducting 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 The price of insurance for a patient may have little relation with what a hospital charges When price transparency is not available many patients find themselves in a situation where they have insufficient fund to clear hospital bills.
Price transparency in the healthcare system will enable patients to identify which hospitals they can access based on what they can afford There are times that physicians don’t even know the cost 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 Proper coordination between health planners and providers is necessary in getting estimate of the price. Major healthcare plan use a cost estimator tool to give patients a cost estimate.