The Need for Price Transparency in the Healthcare System
Effective service delivery is possible through price transparency It is the only way to improve patients experience when they seek treatment in healthcare facilities. 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 The goal of every healthcare facility should be to inform patients how much they owe and when the amount is due for collection 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. 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 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. Transparency will enable consumers to know which healthcare system to choose and give physicians an opportunity to make cost conscious decisions
If patients don’t know the exact vavue of services they cannot compare the pricing with other facilities, this makes the healthcare system dysfunctional. 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. The cost of healthcare is higher than the rate of inflation rising the need for patients to shop for healthcare services 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 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. 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. If a patient goes for treatment and it leads to discovery of another condition, the estimates may differ greatly. This means that there needs to be coordination between health planners and providers to get an estimate on the prices Major healthcare plan use a cost estimator tool to give patients a cost estimate.