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 When patients know wh at amount to pay upfront, they will be more than willing to pay. This will lead to reduction of the amount that remains uncompensated Patients need to be well informed on the amount to pay and by what time This way patients can decide on what services to seek
There is a lot of effort from insurance companies and healthcare providers to improve price transparency. Delivery of quality services is expected to be a success if there are measures put in place to improve price transparency High cost of care is usually blamed on the scarcity of information regarding price 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.
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 cost of treatment may not have any relation with the amount offered by the insurance provider 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. It is not surprising to know that at times physicians don’t even know the price 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 This means that there needs to be coordination between health planners and providers to get an estimate on the 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