How will COVID-19 affect Price Transparency?

Price Transparency and the Future of Healthcare

January 5, 2021

How are hospitals handling Price Transparency in 2021?

January 21, 2021

How will COVID-19 affect Price Transparency?

Price transparency in the healthcare industry is meant to provide meaningful pricing information to consumers. Researchers compared prices among 53 hospitals for a standard heart procedure, and they found a tenfold difference in the price for the same procedure across hospitals. Unfortunately, they found no association between higher prices and better quality of care.

Other studies have shown up to thirty ninefold variations in pricing for a simple blood test across medical centers in the same metro area.

So, do we have any idea about how much we pay for healthcare services?

When we go for a medical procedure, we have no idea how much it will cost us, before, during, or even after, only months later do we get the explanation of it. This has provided an advantage in this era of COVID19. A new virus that nobody knew of or the transparency about how much the treatment would cost. All people can do is give their trust to the healthcare institution if they become ill.

COVID has rather enhanced the need for price transparency, as nearly half of the population is concerned about their healthcare bills more now than ever before.

This issue is not new but has become worse due to COVID. The cost of medical care has been troublesome for 4 in 10 people, as studies show that they have not been able to pay off their medical bills.

Research, unfortunately, shows that nearly one in five people are in debt when it comes to their medical bills. Transparency will only work if the consumer is aware of the quality of services, they will be getting in accordance with what they pay. It is problematic that the quality and cost of medical care services delivered are not completely transparent to the consumer.

If pricing were transparent, people would be able to make better decisions and promote deserving institutions. This itself will help more people to have access to healthcare. In addition, people would be able to save a lot of money as well.

COVID has brought back price transparency again and more people are talking about it now more than ever. Jeanne Pinder conducted a study where she collected data, and she discovered that in Brooklyn, NY you can get an echocardiogram for $200 or you can get it for $2,150 in Manhattan just a few miles away.

Similarly, in New Orleans, you can get a blood test for $19 or get charged $522 just a few miles away. She further states that after collecting data she created an online health guide, which was an incredible help for a lot of people. Jeanne further mentions that a lady in New Orleans saved $3,786 using the data, and a San Francisco consumer nearly saved $1,300 by just paying in cash.

Thus, some people are actually trying to fix this system, a lot of people also went bankrupt due to the costly medicines and treatment. If there had been price transparency this wouldn’t have been the case.

Fortunately, the price transparency rule went into effect on January 1, 2021. This should ease the minds of consumers and help the healthcare system improve.