The Importance of Price Transparency in Healthcare
Price transparency is important in making effective programs and in service delivery 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 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
It is important to note that majority of healthcare facilities and insurance providers are working hard to improve transparency in the services they deliver When there is price transparency, there will delivery of quality services. Scarcity of information on pricing results in cost of care There has been a push for improvement on price transparency 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.
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 The cost of healthcare is higher than the rate of inflation rising the need for patients to shop for healthcare services Many insurers opt to ask for costs from doctors before doing any tests.
It is tough for a provider to come up with accurate cost of a service before knowing the standard price Prices differ in thousands of dollars in hospitals that are in the same locality. The cost of treatment may not have any relation with the amount offered by the insurance provider When price transparency is not available many patients find themselves in a situation where they have insufficient fund to clear hospital bills.
Price transparency will give patients an opportunity to choose healthcare facilities that they can afford It comes as no surprise that there are physicians who don’t know the standard cost of the 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 It means there is a lot of coordination needed between providers and the health plan to get an estimate of prices Major healthcare plan use a cost estimator tool to give patients a cost estimate.
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