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 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 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.
It is important to note that majority of healthcare facilities and insurance providers are working hard to improve transparency in the services they deliver 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 Many people are left in the dark when they seek in-patient care as they don’t know how much they will get charged. Price transparency gives patients an opportunity to compare healthcare systems and choose the best and enable healthcare providers to make cost conscious decisions
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 The cost of healthcare is higher than the rate of inflation rising the need for patients 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 is tough for a provider to come up with accurate cost of a service before knowing 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 cost of treatment may not have any relation with the amount offered by the insurance provider 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 is not surprising to know that at times physicians don’t even know the price of services they provide
Plus, it can get complicated if the patients don’t even know the structure of their insurance cover The estimates tend to vary greatly if a patient goes for treatment and another underlying condition is discovered Proper coordination between health planners and providers is necessary in getting estimate of the price. Major healthcare plan use a cost estimator tool to give patients a cost estimate.