The Need for Price Transparency in the Healthcare System
Price transparency is important in making effective programs and in service delivery It is the only way to improve patients experience when they seek treatment in healthcare facilities. Patients are willing to pay if they know how much is needed upfront This will get rid of delivery of care without getting compensation. Patients need to be well informed on the amount to pay and by what time These way patients are able to make informed decisions when seeking for services
There is a lot of effort from insurance companies and healthcare providers to improve price transparency. Transparency increases the rate of success in providing quality services The cost of care can be reduced by providing sufficient information regarding pricing. The push for price transparency has been going on for many years now. When patients go for in-patient treatment, most of the times they have no idea what they are expected to pay Price transparency gives patients an opportunity to compare healthcare systems and choose the best and enable healthcare providers to make cost conscious decisions
The healthcare system is considered to be dysfunctional when patients cannot compare prices with other service providers However, things are changing with the pressure being put on insurers, drug makers and healthcare providers to offer a price and deliver 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
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 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.
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 Proper coordination between health planners and providers is necessary in getting estimate of the price. 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