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 When patients know wh at amount to pay upfront, they will be more than willing to pay. This helps in reduction of the amount of care that remains uncompensated Each healthcare facility needs to inform patients on what the amount owed and the duration needed to make payment. 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 This is why there is a push for price transparency that has been going on 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 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 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 is not surprising to know that at times physicians don’t even know the price of services they provide
It is even worse when patients don’t have knowledge of how much their insurance cover is providing 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 A lot of progress is expected to be made as many healthcare provider use a cost estimator tool to give insured patients a cost estimate
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