Why Do Hospitals Have To Start Complying With Pricing Transparency?

For a very long time now, prices of medical services and hospital facilities have skyrocketed. While many people justify it saying technology and facilities are rightfully expensive, this extreme increase in costs makes healthcare inaccessible to those who cannot afford it. 

Only recently, a federal judge approved and upheld a final rule for the Centres of Medicare and Medicaid Services to promote hospital price transparency. The implementation date for this rule is January 1st of 2021. While many people are excited to see how this goes, many have their confusion and questions regarding this change. 

What Is The Hospital Price Transparency Rule?

Under this particular rule, all hospitals are supposed to list standard costs and charges for 300 services that are shoppable. These services must be affordable and pocket-friendly for all consumers who pay from their pockets. 

As a result of its implementation, this rule will help solve problems for many people who had to opt for debts for uninsurable procedures. As a result, it will make healthcare more accessible for everyone, encouraging people to get help for their medical problems without the fear of a long, unaffordable bill. 

An essential part of the final rule issued in 2019 concluded that all hospitals, insurance companies, and Healthcare providers would disclose their negotiations, prices, and cash contracts to patients in a format that is easy to access. Doing this will help clarify any questions and confusion regarding bills and taxes for the patients ‘ out-of-pocket expenses. 

Revenue cycle management is the process that analyzes, tracks, and records financial operations, medical billing, appointment scheduling, and tracking patient progress. All the data from revenue cycle management can help diagnose the healthcare industry’s processes, pinpoint the flaws, and correct them ASAP. 

Why Do Hospitals Have To Start Complying With Pricing Transparency?

Hospitals will inevitably start complying with this pricing transparency rule because various benefits come from its implementation. Plus, specific associated results and consequences can be devastating to them if they refuse to cooperate. 

• Implementing a new system using revenue cycle management can help administrators reevaluate and fix their pricing methodologies to create a balance between desired outcomes and a pocket-friendly price list. 
• It will help the authorities reflect on where they started from (the reference prices) and how far they’ve gone in terms of their costs and unexplainable charges. 
• It will bring back the public’s confidence and help health care service providers regain their trust and destroy the money-machine image they have in society.
• Non-compliance will result in punishment, penalties and other such practices. 

Conclusion

Overall, both the authorities and the public are waiting to implement this price transparency rule for hospitals. These healthcare facilities will analyze their methodologies and strategies, fix their flaws, and generate new plans according to the new rules and regulations.

While some speculate that the deadline will make these changes, others think there will be reluctance and delay. Either way, inevitably, hospitals now have to start complying with pricing transparency.

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