The Importance of Price Transparency in Healthcare
Effective service delivery is possible through price transparency This way the experience of patients in healthcare system will improve greatly When patients know wh at amount to pay upfront, they will be more than willing to pay. 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
Most insurance providers and healthcare facilities are striving hard to improve price transparency in services delivered When there is price transparency, there will delivery of quality services. 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 Consumers are usually left in the dark about what they are expected to pay after going for in-patient services Transparency will enable consumers to know which healthcare system to choose and give physicians an opportunity to make cost conscious decisions
The healthcare system is considered to be dysfunctional when patients cannot compare prices with other service providers 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. Healthcare spending is growing above the rate of inflation and patients are burdened with the rising demand to shop for healthcare services Many insurers opt to ask for costs from doctors before doing any 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 There are times that physicians don’t even know the cost of 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 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.