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Price Transparency

Price Transparency The Correlation Between Price Transparency and Value in Healthcare

The healthcare field provides a critical service to the general population, and this is taking care of our greatest asset – our health. Nevertheless, there are some patients that forgo healthcare due to the assumption of high prices. Some research suggest that providing transparent prices in order to improve on healthcare services is ideal.

Primer

  • Research Dates – The research addressing the question of price and value was taken out during the course of two years between 2010 and 2012.
  • Demographic Group – This included individuals who needed MRIs or magnetic resonance imaging.

Findings

  • Group #1: Individuals who received detailed pricing information for MRI procedures were able to secure an estimated 10% decrease in pricing, or otherwise $99.
  • Group #2: On the other hand, patients who did not receive these transparent pricing comparisons among providers of MRI in the local area were subject to an escalation exceeding the same ten percent or $97 more.
  • The decreased pricing among MRI providers can be merited to patients’ exodus from once largely monopolized hospitals, to now independently run and owned office or outpatient facilities.
  • Group #1’s new information-based care, which includes transparent pricing, resulted in decreased hospital visits for MRIs by the group, from a staggering 53% to 45%.

Based on the findings, it’s safe to reason that patient’s value and appreciate transparent pricing. Nevertheless, there are some key considerations that should be noted if other health plans were to adopt clear pricing strategies:

Price Transparency and Efficiency in Healthcare

  • Targeted Pricing – pricing models that are provided should be 100% applicable to patient conditions. As an example, the experimental study that was conducted by the healthcare plan targeted specific demographics over a two year period. This group included patients that were actively seeking MRI providers.
  • Current Pricing and Information – prices will need to be regularly updated and provided to patients.
  • Strategic Scheduling – the study suggest scheduling pricing information when patients most need it, and when the predisposition to change providers is at an all-time high.

This study shows when given pricing easily understandable pricing information patients are able to select high value low cost healthcare services.

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