The Need for Price Transparency in the Healthcare System
Price transparency is important in making effective programs and in service delivery This way the experience of patients in healthcare system will improve greatly Majority of patients will be more than willing to pay as long as they get informed earlier on the amount expexted 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.
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. This is why there is a push for price transparency that has been going on 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. 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. 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 can be hard to know the actual cost without knowledge of 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 It is not uncommon for hospital to charge more than what is provided by insurance companies. When price transparency is not available many patients find themselves in a situation where they have insufficient fund to clear hospital bills.
Price transparency in the healthcare system will enable patients to identify which hospitals they can access based on what 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. If a patient goes for treatment and it leads to discovery of another condition, the estimates may differ greatly. It means there is a lot of coordination needed between providers and the health plan to get an estimate of prices 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
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