The Importance of Price Transparency in Healthcare
Effective service delivery is possible through price transparency Being transparent about prices improves the experience of patients in the healthcare system 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 The goal of every healthcare facility should be to inform patients how much they owe and when the amount is due for collection This will help patients make an informed decision when choosing healthcare providers.
There is a lot of effort from insurance companies and healthcare providers to improve price transparency. Delivery of quality services is expected to be a success if there are measures put in place to improve price transparency High cost of care is usually blamed on the scarcity of information regarding price 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 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. There is rising demand for patients to shop for healthcare services as healthcare spending is higher than the cost of inflation. 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. The cost of treatment varies in thousands of dollars in healthcare facilities that are in the same neighborhood let alone different countries It is not uncommon for hospital to charge more than what is provided by insurance companies. This is why price transparency is important to avoid running into unwanted cost that could be easily avoided
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
It is even worse when patients don’t have knowledge of how much their insurance cover is providing If a patient goes for treatment and it leads to discovery of another condition, the estimates may differ greatly. Proper coordination between health planners and providers is necessary in getting estimate of the price. 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