The Need for Price Transparency in the Healthcare System
Effective programs and service delivery is possible through price transparency This way the experience of patients in healthcare system will improve greatly Patients are willing to pay if they know how much is needed upfront 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. These way patients are able to make informed decisions when seeking for services
Most insurance providers and healthcare facilities are striving hard to improve price transparency in services delivered 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 The push for price transparency has been going on for many years now. Consumers are usually left in the dark about what they are expected to pay after going for in-patient services Price transparency gives patients an opportunity to compare healthcare systems and choose the best and enable healthcare providers 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. There are changes that can be seen especially with the pressure mounted on providers, insurers and drug makers to provide pricing and better 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.
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 price of insurance for a patient may have little relation with what a hospital charges This is how many people find themselves with insufficient funds yet they thought the amount will get covered by the insurance company
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.
It is even worse when patients don’t have knowledge of how much their insurance cover is providing The charges can change drastically if a patient goes for treatment and another complication arises in the process 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.
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