The Importance of Price Transparency in Healthcare
Effective programs and service delivery is possible through price transparency 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. Patients need to be well informed on the amount to pay and by what time 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 Transparency increases the rate of success in providing 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. Healthcare providers can make cost conscious decisions with price transparency and patients can also choose which healthcare facility best suits them.
The health care system cannot be functional if people cannot compare the
pricing with other services as they don’t know the exact value of the purchase There are changes that can be seen especially with the pressure mounted on providers, insurers and drug makers to provide pricing and better 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
If providers don’t know the standard price of treatment, it can be difficult to come up with an accurate figure. Prices differ in thousands of dollars in hospitals that are in the same locality. The price of insurance for a patient may have little relation with what a hospital charges This is why price transparency is important to avoid running into unwanted cost that could be easily avoided
If consumers know the accurate amount to pay, they can easily choose which healthcare facility to go for treatment. It comes as no surprise that there are physicians who don’t know the standard cost of the services they provide
Plus, it can get complicated if the patients don’t even know the structure of their insurance cover The charges can change drastically if a patient goes for treatment and another complication arises in the process 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.