The Importance of Price Transparency in Healthcare
Price transparency is important in making effective programs and in service delivery This way the experience of patients in healthcare system will improve greatly Patients are willing to pay if they know how much is needed upfront This will get rid of delivery of care without getting compensation. 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
Most insurance providers and healthcare facilities are striving hard to improve price transparency in services delivered Delivery of quality services is expected to be a success if there are measures put in place to improve price transparency The cost of care can be reduced by providing sufficient information regarding pricing. There has been a push for improvement on price transparency for many years When patients go for in-patient treatment, most of the times they have no idea what they are expected to pay Price transparency gives patients an opportunity to compare healthcare systems and choose the best and enable healthcare providers 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 Healthcare spending is growing above the rate of inflation and patients are burdened with the rising demand 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 The cost of treatment varies in thousands of dollars in healthcare facilities that are in the same neighborhood let alone different countries The price of insurance for a patient may have little relation with what a hospital charges 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.
It is even worse when patients don’t have knowledge of how much their insurance cover is providing The estimates tend to vary greatly if a patient goes for treatment and another underlying condition is discovered It means there is a lot of coordination needed between providers and the health plan to get an estimate of 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